DP1: Workforce Training, Intangible Investments and Productivity in Europe: Evidence from EU KLEMS and the EU LFS

Discussion Paper 1:  Workforce Training, Intangible Investments and Productivity in Europe: Evidence from EU KLEMS and the EU LFS

Mary O'Mahony and Fei Peng, University of BIrmingham

Abstract

This paper employs industry data, derived from linking the EU LFS to productivity accounts from EU KLEMS, to examine workforce training and productivity in the pre enlargement European Union member states. Training activities are modelled as intangible investments by firms and cumulated to stocks so their impact can be evaluated within a production function framework, including links to the use of information and communications technology (ICT). The results suggest significantly positive effects of training on productivity, both direct and interacted with ICT, with different impacts in services than in production industries. These results are robust to the use of instrumental variables methods, both lagged instruments and a set of variables that capture features of the operation of labour markets.

Workforce Training, Intangible Investments and Productivity in Europe: Evidence from EU KLEMS and the EU LFS

Discussion Paper 10

Differences in Export Behavior of Services and Manufacturing Firms in Slovenia

Tanja Grublješič and Jože Damijan

LICOS Centre for Institutions and Economic Performance, Belgium

Abstract

We provide new comprehensive evidence on similarities and differences in export Behavior of Slovenian manufacturing and services firms by using detailed firm-level panel data for Slovenia. Main findings show that export Behavior in these two types of firms is similar and in line with the big picture that is by now familiar from the literature. Slovenian exporting services firms are more productive than non-exporting firms when observed and unobserved heterogeneity are controlled for. Export premia of services firms is even larger than for exporting manufacturing firms. Similarly, pre-entry premia over non-exporters is even larger than for manufacturing firms. We find some evidence of significant learning-by-exporting effects for services firms, but only when using the Levinsohn and Petrin measure of total factor productivity.

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Differences in Export Behavior of Services and Manufacturing Firms in Slovenia

DP12: Services offshoring and wages: Evidence from micro data

Discussion Paper 12

Services offshoring and wages: Evidence from micro data

Ingo Geishecker and Holger Görg

Kiel Institute for the World Economy, Germany

Abstract

This paper investigates the effects of services offshoring on wages using individual level data combined with industry information on offshoring. Our results show that services ofsshoring affects the real wage of low and medium skilled individuals negatively. By contrast, skilled workers benefit from services offshoring in terms of higher real wages. Hence, offshoring has contributed to a
widening of the wage gap between skilled and less skilled workers. This result is obtained while controlling for individual and sectoral observed and unobserved heterogeneity. In particular, our empirical model also controls for the impact of technological change and offshoring materials.

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Services offshoring and wages: Evidence from micro data