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Abstract(s)
For many decades, Latin America followed an import-substitution industrialization (ISI)
process. Constant technological developments, complex production processes and
stronger international competition put in evidence some workforce fragilities, their lack
of skills and capabilities. Enhancing investments in both job training and R&D may be a
proper reaction for either the more immediate needs or the medium/long run structural
demands, in Latin America. Exploring a firm-level dataset from Chile and Argentina,
we estimate the firms’ training decision (standard probit model) and the productivity
effects through OLS, treatment-effects model and instrumental variable, using industry
and region fixed effects and clustered standard errors. Using OLS, training estimates on
firms’ performance are 24% in Chile and 18% in Argentina. Joint investment in training
and R&D leads job training to have an effect of 53% in Chile and 22% in Argentina,
and R&D a magnitude of 9% in Chile and 5% in Argentina, which seems to evidence a
complementarity relationship between these two policies. Although with different
magnitudes, conclusions remain consistent using OLS, treatment-effects and IV. Firms’
heterogeneity is also accounted for, estimating a quantile model.
Description
Keywords
Job training Incidence of job training Firms productivity Innovation and R&D Firm-level data