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Productivity effects of enterprise-related training

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  • Wim Groot

Abstract

In this paper we use data on individual productivity ratings to analyse the productivity and wage effects of enterprise-related training. The average productivity growth of training is 16%, while the average productivity difference between trained and nontrained workers is 8%. The average wage growth is less than a quarter of the average productivity growth. Further, a sizeable fraction of the workers contributes to the costs of training but receives none of its benefits, while another fraction of the trained workers shares in the benefits of training without having contributed to it.

Suggested Citation

  • Wim Groot, 1999. "Productivity effects of enterprise-related training," Applied Economics Letters, Taylor & Francis Journals, vol. 6(6), pages 369-371.
    • Handle: RePEc:taf:apeclt:v:6:y:1999:i:6:p:369-371
    DOI: 10.1080/135048599353104
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    References listed on IDEAS

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    1. Barron, John M & Black, Dan A & Loewenstein, Mark A, 1989. "Job Matching and On-the-Job Training," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 1-19, January.
    2. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
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    Cited by:

    1. Roberto Antonietti, 2016. "From outsourcing to productivity, passing through training: microeconometric evidence from Italy," Industry and Innovation, Taylor & Francis Journals, vol. 23(5), pages 407-425, July.
    2. Preeya Mohan & Eric Strobl & Patrick Watson, 2018. "In-firm training, innovation and productivity: the case of Caribbean Small Island Developing States," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 30(9-10), pages 987-1011, October.
    3. Maliranta, Mika & Asplund, Rita, 2007. "Training and Hiring Strategies to Improve Firm Performance," Discussion Papers 1105, The Research Institute of the Finnish Economy.
    4. Berg, Peter B. & Hamman, Mary K. & Piszczek, Matthew & Ruhm, Christopher J., 2015. "The Relationship Between Establishment Training and the Retention of Older Workers: Evidence from Germany," IZA Discussion Papers 9508, Institute of Labor Economics (IZA).
    5. Görlitz, Katja, 2011. "Continuous training and wages: An empirical analysis using a comparison-group approach," Economics of Education Review, Elsevier, vol. 30(4), pages 691-701, August.
    6. Anne Wyatt & Hermann Frick, 2010. "Accounting for Investments in Human Capital: A Review," Australian Accounting Review, CPA Australia, vol. 20(3), pages 199-220, September.
    7. Carla Haelermans & Lex Borghans, 2012. "Wage Effects of On-the-Job Training: A Meta-Analysis," British Journal of Industrial Relations, London School of Economics, vol. 50(3), pages 502-528, September.
    8. Preeya Mohan & Eric Strobl & Patrick Watson, 2017. "In-Firm Training, Innovation and Productivity: The Case of Caribbean Small Island Developing States," IDB Publications (Working Papers) 98136, Inter-American Development Bank.
    9. Pål Schøne, 2007. "Does increased international competition increase the need for training?," Applied Economics Letters, Taylor & Francis Journals, vol. 14(2), pages 151-155.
    10. Daria Ciriaci, 2017. "Intangible resources: the relevance of training for European firms’ innovative performance," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(1), pages 31-54, April.
    11. Diéguez Castrillón, Mª I. & Sinde Cantorna, A.J., 2004. "Determinantes De La Política De Formación En Empresas Adoptantes De Nuevas Tecnologías De Fabricación Avanzada /," Investigaciones Europeas de Dirección y Economía de la Empresa (IEDEE), Academia Europea de Dirección y Economía de la Empresa (AEDEM), vol. 10(2), pages 115-130.
    12. Giulio Pedrini, 2017. "Law and economics of training: a taxonomy of the main legal and institutional tools addressing suboptimal investments in human capital development," European Journal of Law and Economics, Springer, vol. 43(1), pages 83-105, February.
    13. Daria Ciriaci, 2011. "Intangible resources: the relevance of training for European firms innovative performance," JRC Working Papers on Corporate R&D and Innovation 2011-06, Joint Research Centre.
    14. Larisa PANTEA, 2019. "Aspects regarding human capital and its influence on the competitiveness of firms in the European Union," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11(3), pages 198-210, Octomber.
    15. repec:zbw:rwirep:0197 is not listed on IDEAS
    16. Gérard Ballot & Fathi Fakhfakh & Erol Taymaz, 2002. "Who benefits from training and R&D: The firm or the workers? A study on panels of French and Swedish firms," ERC Working Papers 0201, ERC - Economic Research Center, Middle East Technical University, revised Jan 2002.
    17. Katja Görlitz, 2010. "Continuous Training and Wages – An Empirical Analysis Using a Comparison-group Approach," Ruhr Economic Papers 0197, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    18. Jan M.P. de Kok, 2000. "The Impact of Firm-Provided Training on Production: Testing for Firm-Size Effects," Tinbergen Institute Discussion Papers 00-073/3, Tinbergen Institute.
    19. Simone Tuor & Uschi Backes-Gellner, 2009. "Time - Even More Costly Than Money: Training Costs of Workers and Firms," Economics of Education Working Paper Series 0046, University of Zurich, Department of Business Administration (IBW).
    20. Isabel Diéguez & Ana Cantorna & Ana Canto, 2005. "Organizational Training In Manufacturing Firms And Advanced Manufacturing Technologies," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(1), pages 57-70.

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