In this study, we develop an alternative modelling that examines a) the determinants of firm productivity and wages and b) the internal rate of return (IRR) to firm training for both firms and workers. Using a six-year linked employer-employee dataset, our estimates indicate that an additional...

We offer in this paper an alternative way of controlling for worker and firm heterogeneity. Our strategy assumes that the gap between the individual wage and the firm average wage, unexplained by differences in observable characteristics, gives the extent to which the individual unobserved...