WorkpackagesDiscussion Paper 1
Human Capital Formation and Continuous Training: Evidence for EU countries
Mary O'Mahony
University of BIrmingham
Abstract
This paper links data on continuous training from the EU LFS to information on skill levels and earnings from the EU KLEMS growth and productivity accounts, to examine the relative magnitudes of continuous workforce training versus human capital formation through the general education system in the European Union. The results suggest that in the EU15 group of countries intangible investments in training represent just under 2% of GDP or about 35% of expenditure on general education. The share of GDP accounted for by training is less than a third as large in the new member states. A growth accounting method is employed to show that failure to account for informal training leads to a significant underestimate of the impact of human capital on output growth in the EU.
