Wage and Productivity Effect of Continuing Training in Germany: A Sectoral Analysis

37 Pages Posted: 3 May 2006 Last revised: 26 Aug 2008

See all articles by Anja Kuckulenz

Anja Kuckulenz

Center for European Economic Research (ZEW)

Date Written: 2006

Abstract

Wage and productivity effects of training are compared to study how the training rent is shared between employers and employees. With panel data from 1996-2002, I analyse the impact of continuing training on wages and productivity in a Cobb-Douglas production framework. Using system GMM techniques allows me to account for endogeneity and time invariant unobserved factors. Results suggest that the training rent is shared between employer and employee due to a positive effect of continuing training on both wages and productivity. The effect on productivity is about three times higher than the one on wages. High skilled workers capture a larger share of the rent than low skilled workers.

Keywords: continuing vocational training, system GMM estimation, wage effect, productivity effect, external effect

JEL Classification: J24, J31, C21, C23

Suggested Citation

Kuckulenz, Anja, Wage and Productivity Effect of Continuing Training in Germany: A Sectoral Analysis (2006). ZEW - Centre for European Economic Research Discussion Paper No. 06-025, Available at SSRN: https://ssrn.com/abstract=898623 or http://dx.doi.org/10.2139/ssrn.898623

Anja Kuckulenz (Contact Author)

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

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