Training, Wage Growth and Job Performance: Evidence From a Company Database

Bartel, Ann P.

doi:10.3386/w4027

Cited by 159 publications

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“…The variable Access to …nance problematic is derived from 4 For example, the 2002 BEEPS does not contain detailed questions on speci…c types of credit market experience by …rms, and the 2008 BEEPS has no questions on on-the-job training. 5 I drop Albania and Uzbekistan because the di¤erence between the share of …rms o¤ering training in 2005 and in 2002 -the survey used in the panel exercise -is enormous (more than 50%), raising questions about the survey methodology used in these two countries. I also drop very large …rms to make sure that I have a representative SME sample.the question: "How problematic is access to …nancing for the operation and growth of your business?"…”

Section: Datamentioning

confidence: 99%

Credit constraints and investment in human capital: Training evidence from transition economies

Popov¹

2014

Journal of Financial Intermediation

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may Alexander PopovIn 2013 all ECB publications feature a motif taken from the €5 banknote.note: This Working Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB. AbstractUsing a unique survey database of 8265 …rms from 25 transition economies, I …nd that lack of access to …nance in general, and to bank credit in particular, is associated with signi…cantly lower investment in on-the-job training. This e¤ect is stronger in education-intensive industries and in industries facing good global growth opportunities. To address endogeneity issues, I use the structure of local credit markets as an instrument for credit constraints at the …rm-level. In addition, in panel estimates, I control for the presence of unobserved …rm-level heterogeneity, as well as for changes in macroeconomic conditions. JEL classi…cation: G10, J21, J24, M53. Keywords: credit constraints, human capital, on-the-job training. Becker (1962) was the …rst to argue that lack of access to external …nancing may depress e¢ cient investment in training, either because credit constrained workers will not be willing to accept lower wages, or because credit constrained …rms may not be able to pay workers more than their marginal product during the training period. Non-Technical SummaryHowever, because direct measures of credit constraints are missing in conventional datasets, there is no microevidence that credit constraints a¤ect training or that the magnitude of the e¤ect is economically important. There are three main stumbling blocks in evaluating the impact of credit market imperfections on investment in human capital. The …rst one is that while the literature has studied extensively what constitutes a credit constrained …rm, credit constrained …rms are usually not observable. To deal with this issue, I identify …rms that do not have access to 1 credit markets from replies to direct questions about whether …rms were denied credit or did not apply fearing that they would be denied. Second, credit constrained …rms may also be …rms for which the return to training is lower due to their more general technology, to their inability to lock workers into long-term contracts, or to their low degree of oligopsonic power. The detailed …rm-level dataset used in this paper makes it possible to circumvent this problem by allowing me to obse...

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Section: Datamentioning

confidence: 99%

Credit constraints and investment in human capital: Training evidence from transition economies

Popov¹

2014

Journal of Financial Intermediation

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“…Bonnal et al (1997) report that, in the private sector, on-the-job training increases the employment rates, especially for young workers. Bartel (1995) shows that, at firm level, wages and productivity are positively affected by on-the-job training. Finally, several other studies find that on-the-job training has a significantly positive impact on productivity (see, among others, Bartel, 1994;Barrett and O'Connell, 2001;Conti, 2005;Dearden et al, 2006).…”

Section: Introductionmentioning

confidence: 99%

Retaining through training even for older workers

Picchio

Ours

2013

Economics of Education Review

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S Forschungsinstitut zur Zukunft der ArbeitInstitute for the Study The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public.IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. This paper investigates whether on-the-job training has an effect on the employability of workers. Using data from the Netherlands we disentangle the true effect of training incidence from the spurious one determined by unobserved individual heterogeneity. We also take into account that there might be feedback from shocks in the employment status to future propensity of receiving firm-provided training. We find that firm-provided training significantly increases future employment prospects. This finding is robust to a number of robustness checks. It also holds for older workers, suggesting that firm-provided training may be an important instrument to retain older workers at work.JEL Classification: C33, C35, J21, J24, M53

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“…The idea that investment in general training is delayed is not at odds with the empirical evidence. For instance, Loewenstein and Spletzer (1997) find that delayed formal training seems to be the rule rather than the exception, and Bartel (1995), analyzing personnel records, finds that 47% of the individuals hired before 1980 have received some formal training by 1990. 3 When general training is delayed, it is shown that the strategic complementarity between specific and general training increases the worker's incentives to invest in specific training.…”

Section: Introductionmentioning

confidence: 99%

Firm‐Sponsored General Training

Balmaceda

2005

Journal of Labor Economics

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JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.. Universidad de ChileThis article analyzes firm and worker's incentives to invest in general and specific training when these are separable in the production technology and wages are determined by the outside-option principle. It is shown that firms pay for general training, while workers receive the full return on it, and firms and workers share both the costs and benefits of specific training. The case of delayed general training is also studied. When general training is delayed, it is shown that the strategic complementarity between specific and general training increases the worker's incentives to invest in specific training.

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Training, Wage Growth and Job Performance: Evidence From a Company Database

Cited by 159 publications

References 4 publications

Credit constraints and investment in human capital: Training evidence from transition economies

Credit constraints and investment in human capital: Training evidence from transition economies

Retaining through training even for older workers

Firm‐Sponsored General Training

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