Employer-provided training and productivity: Evidence from a panel of Japanese Firms

Abstract

This study presents evidence on the quantitative relationship between employer-provided training and productivity among Japanese firms. The important contributions of this study are its construction of a panel of training stock at the firm-level, its distinction between manufacturing and service firms, and its comparison of the relative contribution of training to productivity and wages. The results indicate, first, that training significantly contributes to the labor productivity of the firm. Second, the estimated elasticity of productivity with respect to training stock is greater for service firms than for manufacturing firms. Third, the elasticities of productivity and wages to training stock are similar in size, meaning that the returns to firms' training investments are shared by their workers in proportion to the wage share of the value-added. These results suggest that policies to promote firms' training investments have the potential to improve productivity and wages, particularly for firms in service sector.

Training, Productivity and Wages: Direct Evidence from a Temporary Help Agency

“…For example, Dearden et al (2006) estimated that a 1 percentage point (pp) increase in the fraction of workers receiving training increased valueadded per worker by about 0.6% and average wages by 0.3% for firms in the UK, and Konings and Vanormelingen (2015) estimated a 1pp increase in the fraction of workers trained increased productivity by 0.17-0.32%, and average wages by 0.1-0.17% for Belgium firms. In contrast, recent evidence by Morikawa (2021) for Japan finds training has low but similar e↵ects on both productivity and wages, with elasticities of about 0.02. Our study adds to the literature by showing the gap between MPL and wages based on individual employee level data.…”

Business productivity and efficiency from aligning with sustainable development goals: Empirical evidence from ASEAN manufacturing firms

“…For China, Liu and Lu (2016) found a statistically and economically significant positive impact of training on firm productivity and workers' wages for large and medium‐sized manufacturing firms. Hence, upgrading human capital via employee training is an essential economic policy to enhance productivity (Morikawa, 2021). Such training helps improve human capital within an organization, leading to higher technical efficiency since employee knowledge, skills, and abilities are thus enhanced.…”

Investigación multidisciplinaria desde una visión multidisciplinar. Libro 1

“…Los hallazgos revelan que la capacitación aporta significativamente a la productividad de la mano de obra de modo específico en las empresas del sector servicios. Las elasticidades de las actividades de capacitación en función del salario y la productividad son iguales en tamaño a los rendimientos de las inversiones pensadas desde el valor agregado (Morikawa, 2021).…”