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The impact of training on productivity: evidence from a panel of Italian firms

Author

Listed:
  • Emilio Colombo
  • Luca Stanca

Abstract

Purpose - – The purpose of this paper is to investigate the effects of training activity on labor productivity in a panel of Italian firms. Design/methodology/approach - – The use of a large panel data of individual firms allows the author to properly account for the possible endogeneity of training activity and avoid aggregation biases typical in industry-level data. Findings - – The paper finds that training has a positive and significant impact on productivity. While unobserved heterogeneity leads to overestimate the impact of training, failing to account for the endogeneity of training leads to underestimate its effects on productivity. Within occupational groups, training has large and significant effects for blue-collar workers, while the effects for executives and clerks are relatively small. Finally, using a measure of effective training intensity the paper finds that failing to account for training duration may lead to underestimate the effect of training on productivity. Originality/value - – Our data set is unique in terms of size and coverage and overcomes several limitations of previous research using firm-level data. Moreover, besides estimating the overall effect of training on productivity, the paper allows to address some more specific questions. Does the effect of training depend on the type of worker being trained? What is the relevance of effective participation to training activity?

Suggested Citation

  • Emilio Colombo & Luca Stanca, 2014. "The impact of training on productivity: evidence from a panel of Italian firms," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(8), pages 1140-1158, October.
    • Handle: RePEc:eme:ijmpps:v:35:y:2014:i:8:p:1140-1158
    DOI: 10.1108/IJM-08-2012-0121
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    Citations

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    Cited by:

    1. Elena Feltrinelli & Roberto Gabriele & Sandro Trento, 2017. "The Impact of Middle Manager Training on Productivity: A Test on Italian Companies," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(2), pages 293-318, April.
    2. Rita Almeida & Reyes Aterido, 2015. "Investing in formal on-the-job training: are SMEs lagging much behind?," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-23, December.
    3. Francesca Sgobbi, 2016. "Train the worst or train the best? The determinants of employer-sponsored training in five European countries," Working Papers 29, Birkbeck Centre for Innovation Management Research, revised Jan 2016.
    4. Sarah Sanders Smith & Ray Peters & Cam Caldwell, 2016. "Creating a Culture of Engagement -- Insights for Application," Business and Management Research, Business and Management Research, Sciedu Press, vol. 5(2), pages 70-80, June.
    5. Spyridon Boikos & Mehmet Pinar & Thanasis Stengos, 2023. "Bribery, on-the-job training, and firm performance," Small Business Economics, Springer, vol. 60(1), pages 37-58, January.
    6. Jancenelle, Vivien E., 2021. "Tangible−Intangible resource composition and firm success," Technovation, Elsevier, vol. 108(C).
    7. Henrik Hansen & S Kanayade & John Rand & Neda Trifkovic, 2021. "Workplace training in Myanmar: Determinants and wage returns," DERG working paper series 21-10, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
    8. Henrik Hansen & S. Kanay De & John Rand & Neda Trifković, 2023. "Wage returns to workplace training in Myanmar," Development Policy Review, Overseas Development Institute, vol. 41(2), March.
    9. Jorge Antonio Rodríguez-Moreno & María Engracia Rochina-Barrachina, 2019. "ICT Use, Investments in R&D and Workers’ Training, Firms’ Productivity and Markups: The Case of Ecuadorian Manufacturing," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(4), pages 1063-1106, September.
    10. Dewi Adriani & Tien Yustini, 2021. "Anticipating the demographic bonus from the perspective of human capital in Indonesia," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(6), pages 141-152, September.
    11. Pedrini, Giulio & Cappiello, Giuseppe, 2022. "The impact of training on labour productivity in the European utilities sector: An empirical analysis," Utilities Policy, Elsevier, vol. 74(C).

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