Cost and Productivity Effects of Firm Financed Training

Eugenia Kazamaki Ottersten, Thomas Lindh and Erik Mellander
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Eugenia Kazamaki Ottersten: Research Institute of Industrial Economics (IFN)
Erik Mellander: Research Institute of Industrial Economics (IFN)

No 455, Working Paper Series from Research Institute of Industrial Economics

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.

Keywords: ENTERPRISES; TRAINING; WORKERS; PRODUCTIVITY (search for similar items in EconPapers)
JEL-codes: C51 D21 J24 J31 (search for similar items in EconPapers)
Pages: 47 pages
Date: 1996-04-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0455

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