Workers participating in firm-sponsored training receive higher wages as a result. But given that firms pay the …-sponsored training leads to higher productivity levels and increased innovation, both of which benefit the firm. Training can also be …

This paper uses individual data on employment and wages to shed light on the UK's productivity puzzle. It finds that … workforce composition cannot explain the reduction in wages and hence productivity that we observe; instead, real wages have … lower capital-labour ratio. We cannot tell whether productivity is driving wages or vice versa, but understanding why wages …