The impact of training on labour productivity in the European utilities sector: An empirical analysis. (February 2022)

• Record Type: Journal Article
• Authors: Pedrini, Giulio; Cappiello, Giuseppe
• Is Part Of: Utilities policy. Volume 74(2022)
• Publication Date: 2022-02
• Subjects: Training -- Productivity -- Knowledge; Public utilities -- United States -- Periodicals; Public utilities -- Government policy -- United States -- Periodicals; 363.6
• DOI: 10.1016/j.jup.2021.101317
• Languages: English
• ISSNs: 0957-1787

Abstract

Abstract: This paper investigates the effects of firm training on productivity growth among sustainable utility companies in Europe during the Great Recession (2008–2010). The empirical analysis uses an ad-hoc dataset based on the merge between financial and sustainability reporting. Evidence indicates the existence of positive effects of both training flow and training stock on average labour productivity, showing the crucial role of firm-sponsored human capital development in the utilities sector. Results and implications offer useful insights for a faster recovery of the utilities sector after severe recessions and in presence of major techno-organizational changes through countercyclical training investments. Highlights: The paper investigates the effects of firm training on labour productivity in the European utilities sector from an economic perspective. A sample of sustainable firms operating in 17 countries is used. A model based on an extended production function is adopted. Empirical evidence shows a substantial and positive impact of training investments on average labour productivity. We contribute to the literature by stressing the pivotal role of firm-sponsored training during recessions.