The impact of training on productivity and wages: Evidence from British Panel Data

Lorraine Dearden, Howard Reed, John Van Reenen

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218 Citations (Scopus)


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 1983-96 and a variety of estimation techniques we find that work-related training is associated with significantly higher productivity. A 1% 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 data sets that is suggestive of training externalities. © Blackwell Publishing Ltd, 2006.
Original languageEnglish
Pages (from-to)397-421
Number of pages25
JournalOxford Bulletin of Economics and Statistics
Issue number4
Publication statusPublished - 2006

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