Work

The Impact of Training on Productivity and Wages: Evidence from British Panel Data*

Year: 2006

Type: article

Abstract: It is standard in the literature on training to use wages as a sufficient statistic for productivity. This paper examines the effects of work‐related training on direct measures of productivity. Using a new panel of British industries 1983–96 and a variety of estimation techniques we find that work‐related training is associated with significantly higher productivity. A 1% point increase in training is associated with an increase in value added per hour of about 0.6% and an increase in hourly wages of about 0.3%. We also show evidence using individual‐level data sets that is suggestive of training externalities.

Source: Oxford Bulletin of Economics and Statistics

DOI: 10.1111/j.1468-0084.2006.00170.x

Authors: Lorraine Dearden, Howard Reed, John Van Reenen

Institutions: Institute for Fiscal Studies, Institute for Public Policy Research, Centre for Economic Policy Research, London School of Economics and Political Science

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

Funders: London School of Economics and Political Science, Leverhulme Trust, Economic and Social Research Council