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Employee Training and Firm Performance: Quasi-experimental evidence from the European Social Fund

Pedro Martins

No 152, GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia

Abstract: As work changes, firm-provided training may become more relevant; however, there is little causal evidence about the effects of training on firms. This paper studies a large training grants programme in Portugal, contrasting successful firms that received the grants and unsuccessful firms that did not. Combining several rich data sets, we compare a large number of potential outcomes of these firms, while following them over long periods of time before and after the grant decision. Our difference-in-differences models estimate significant positive effects on take up (training hours and expenditure), with limited deadweight; and that such additional training led to increased sales, value added, employment, productivity, and exports. These effects tend to be of at least 5% and, in some cases, 10% or more, and are robust in multiple dimensions of the analysis.

Keywords: Training subsidies; Productivity; Counterfactual evaluation. (search for similar items in EconPapers)
JEL-codes: H43 J24 M53 (search for similar items in EconPapers)
Pages: 74 pages
Date: 2020-06, Revised 2020-06
New Economics Papers: this item is included in nep-bec, nep-eff, nep-eur, nep-hrm and nep-lma
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http://www.gee.gov.pt//RePEc/WorkingPapers/GEE_PAPERS_152.pdf First version, 2020 (application/pdf)

Related works:
Working Paper: Employee Training and Firm Performance:Quasi-experimental evidence from the European Social Fund (2020) Downloads
Working Paper: Employee Training and Firm Performance: Quasi-experimental evidence from the European Social Fund (2020) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:mde:wpaper:0152

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