(Centre for Economic Policy Research, 2009-09) Konings, Jozef; Vanormelingen, Stijn
This paper uses firm level panel data of firm provided training to estimate its
impact on productivity and wages. To this end the strategy proposed by
Ackerberg, Caves and Frazer (2006) for estimating production functions to
control for the endogeneity of input factors and training is applied. The
productivity premium for a trained worker is estimated at 23%, while the wage
premium of training is estimated at 12%. Our results give support to recent
theories that explain work related training by imperfect competition in the labor
market.