Employee training and firm performance
Evidence from ESF grant applications
As work changes, firm-provided training may become more relevant. However, there is
little causal evidence about the effects of training on firms. This paper studies
a large training grants programme in Portugal, supported by the European Social Fund,
contrasting firms that received the grants and firms that also applied but were unsuccessful.
Combining several rich data sets, we compare many potential outcomes of these firms,
while following them over several years both before and after the grant decision.
Our difference-in-differences models estimate significant positive effects on take
up (training hours and expenditure), with limited deadweight; and that such additional
training led to increased sales, value added, employment, productivity, and exports
(although not profits). These effects tend to be of at least 5% and, in some cases,
10% or more, and are robust in multiple dimensions.
Published on July 08, 2021
In series:OECD Productivity Working Papersview more titles