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It is standard in the literature on training to use wages as a sufficient statistic for productivity. This paper examines the effects of work-related training on direct measures of productivity. Using a new panel of British industries 1983-1996 and a variety of estimation techniques we find that work-related training is associated with significantly higher productivity. A one percentage point increase in training is associated with an increase in value added per hour of about 0.6% and an increase in hourly wages of about 0.3%. We also show evidence using individual level datasets that is suggestive of training externalities.
Authors
Lorraine Dearden
Howard Reed
John Van Reenen
Working Paper details
- DOI
- 10.1920/wp.ifs.2005.0516
- Publisher
- IFS
Suggested citation
L, Dearden and H, Reed and J, Van Reenen. (2005). The impact of training on productivity and wages: evidence from British panel data. London: IFS. Available at: https://ifs.org.uk/publications/impact-training-productivity-and-wages-evidence-british-panel-data (accessed: 26 April 2024).
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