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Do Computers Call for Training? Firm-level Evidence on Complementarities Between ICT and Human Capital Investments

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  • Hempell, Thomas

Abstract

This paper explores whether investments in information and communication technologies (ICT) and firm?sponsored training programmes are complementary. Three approaches are applied to panel data from German service companies for the time period 1994?98. Results for a system of interrelated factor demands indicate that training complements ICT but not other capital goods. SYS?GMM estimates of production functions reveal that ICT capital is most productive if complemented by training measures in skill?intensive firms. Comparing the impacts on productivity and wage costs shows that ICT raise the profitability of training high?skilled employees.

Suggested Citation

  • Hempell, Thomas, 2003. "Do Computers Call for Training? Firm-level Evidence on Complementarities Between ICT and Human Capital Investments," ZEW Discussion Papers 03-20, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:1017
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    References listed on IDEAS

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    More about this item

    Keywords

    Productivity; Training; Information and Communication Technologies; Complementarities; Services; Panel Data;
    All these keywords.

    JEL classification:

    • 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
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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