Premium
Who Benefits from Training and R&D, the Firm or the Workers?
Author(s) -
Ballot Gérard,
Fakhfakh Fathi,
Taymaz Erol
Publication year - 2006
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/j.1467-8543.2006.00509.x
Subject(s) - endogeneity , productivity , physical capital , investment (military) , training (meteorology) , wage , labour economics , capital (architecture) , order (exchange) , economics , business , control (management) , microeconomics , human capital , econometrics , finance , macroeconomics , market economy , physics , meteorology , history , management , archaeology , politics , political science , law
The present paper offers a novel study of the effects of intangible assets on wages and productivity. Training, R&D and physical capital are all taken into account, and their joint effects are examined. We use panels of firms in order to control for unobserved fixed effects and the potential endogeneity of training and R&D, using data for France and Sweden. The estimation of productivity and wage equations allows us to show how the benefits of investment in physical capital, training and R&D are shared between the firm and the workers. We found that firms indeed obtain the largest part of the returns to their investments, but their share is relatively lower for intangible assets (R&D and training) than for physical capital.