Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272563 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 15936
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Using firm-level data covering the 27 EU countries, the UK and the US, we show that employers tend to reduce investment in training per employee after adopting advanced digital technologies (ADT). We estimate with a control function approach firm-level production functions augmented with two factors, the training stock per employee and digital technology use. We show that ADT use and employee training are substitutes in production, implying that an increase in the former negatively affects the marginal productivity of the latter, and that a decline in the cost of introducing ADT reduces employers' investment in training per employee. These findings point to challenges in realizing high levels of firm-sponsored training for employees in increasingly digital economies.
Subjects: 
digitization
automation
training
productivity
JEL: 
D24
J24
Document Type: 
Working Paper

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