Do Computers Call for Training? Firm-level Evidence on Complementarities Between ICT and Human Capital Investments


Hempell, Thomas


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URL: http://ub-madoc.bib.uni-mannheim.de/181
URN: urn:nbn:de:bsz:180-madoc-1816
Document Type: Working paper
Year of publication: 2003
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: J24 D24 C23 J31 ,
Subject headings (SWD): Informationstechnik
Abstract: This paper explores whether investments in information and communication technologies (ICT) and firms sponsored training programmes are complementary. Three approaches are applied to panel data from German service companies for the time period 1994. Results for a system of interrelated factor demands indicate that training complements ICT but not other capital goods. SYS GMM estimates of production functions reveal that ICT capital is most productive if complemented by training measures in skill intensive firms. Comparing the impacts on productivity and wage costs shows that ICT raise the profitability of training high skilled employees.
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