Firm sponsored training and productivity in Morocco

Using a sample of around 500 large and small firms covering six industries in Morocco, the article investigates the relationship between a firm's training decision in 1999 and labour productivity in subsequent years. The analytical framework allows output to depend on unobserved-time-invariant firm characteristics and assumes that technical progress depends on training. Controlling for unobserved heterogeneity among firms and correcting for potential selfselection and endogeneity bias, the estimation shows that the intensity of training has a significant and positive impact on productivity in small and medium enterprises. The finding is robust to the introduction of various control variables. © 2011 Taylor & Francis.SCOPUS: ar.j