Abstract

This research presents for the first time panel evidence on the performance and wage effects of middle mangers' training in Italy. It also offers an analysis of the determinants of training by investigating the relationship between training provision and firm characteristics. It is based on a rich and reliable panel dataset covering Italian firms for the years 2006-2011. Several estimation techniques and model specifications are implemented to argue that middle mangers' training significantly increases productivity and to prove the existence of a 'too-much-of a good' thing effect. Similarly a simulation of the wage effects of training shows how the positive magnitude of the coefficients seems to be severely affected by the training measure used. All the analysis implemented suggests the importance of firm's size and geographic location in explaining training provision, firm's performance, and wages. Indeed larger firms and firms located in Northern Italy appear to be more likely to offer training of higher intensity, quality and variety. Furthermore training is found to be more effective for what concerns business results and individual wages. This might suggest that medium-small firms and firms located in Southern areas could be trapped in a circle of scarce, low quality and standardised training provision with obvious implications on its efficiency and returns.