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Cost and Productivity Effects of Firm Financed Training

Author

Listed:
  • Kazamaki Ottersten, Eugenia

    (Research Institute of Industrial Economics (IFN))

  • Lindh, Thomas

    (Uppsala University)

  • Mellander, Erik

    (Research Institute of Industrial Economics (IFN))

Abstract

A quality-adjusted specification of labor is suggested which allows firm training to affect labor efficiency. To assess the cost and productivity effects, this specification is integrated into a flexible neoclassical cost function. The empirical analysis uses panel data for eight plants in the Swedish Machine Tool Industry. The econometric results imply a high probability that training expenditures result in net decreases in total costs. Judging from the corresponding point estimates, these cost savings can be very large. The estimates of productivity effects are also positive, albeit rather small.

Suggested Citation

  • Kazamaki Ottersten, Eugenia & Lindh, Thomas & Mellander, Erik, 1996. "Cost and Productivity Effects of Firm Financed Training," Working Paper Series 455, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0455
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    File URL: https://www.ifn.se/wfiles/wp/wp455.pdf
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    References listed on IDEAS

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    Cited by:

    1. Eugenia Kazamaki Ottersten & Thomas Lindh Mellander, 1999. "Evaluating firm training, effects on performance and labour demand," Applied Economics Letters, Taylor & Francis Journals, vol. 6(7), pages 431-437.

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    More about this item

    Keywords

    ENTERPRISES; TRAINING; WORKERS; PRODUCTIVITY;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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