Training, productivity and wages in Italy

This paper presents for the first time panel evidence on the productivity and wage effects of training in Italy. It is based on an original dataset which has been created aggregating individual-level data on training with firm-level data on productivity and wages into an industry panel covering all sectors of the Italian economy for the years 1996-1999. I use several modelling specifications and a variety of panel data techniques to argue that training significantly boosts productivity. However, no such effect is uncovered for wages. This seems to suggest that firms do actually reap more of the returns.