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The Effects of Training on Own and Co‐worker Productivity: Evidence from a Field Experiment

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  • Andries De Grip
  • Jan Sauermann

Abstract

This paper analyses the e ects of work-related training on worker productivity. To identify thecausal eff ects from training, we combine a field experiment that randomly assigns workers to treatmentand control groups with panel data on individual worker performance before and after training.We fi nd that participation in the training programme leads to a 10 percent increase inperformance. Moreover, we provide experimental evidence for externalities from treated workers ontheir untreated teammates: An increase of 10 percentage points in the share of treated peers leadsto a performance increase of 0.51 percent. We provide evidence that the estimated eff ects arecausal and not the result of employee selection into and out of training. Furthermore, we fi ndthat the performance increase is not due to lower quality provided by the worker.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 122 (2012)
Issue (Month): 560 (05)
Pages: 376-399

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Handle: RePEc:ecj:econjl:v:122:y:2012:i:560:p:376-399

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  1. Thomas Zwick, 2003. "The Impact of ICT Investment on Establishment Productivity," National Institute Economic Review, National Institute of Economic and Social Research, vol. 184(1), pages 99-110, April.
  2. Daniel Parent, 2003. "Employer-supported training in Canada and its impact on mobility and wages," Empirical Economics, Springer, vol. 28(3), pages 431-459, July.
  3. Lorraine Dearden & Howard Reed & John Van Reenen, 2006. "The Impact of Training on Productivity and Wages: Evidence from British Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(4), pages 397-421, 08.
  4. Armin Falk & Andrea Ichino, 2004. "Clean Evidence on Peer Effects," Levine's Bibliography 666156000000000439, UCLA Department of Economics.
  5. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA).
  6. S Black & L Lynch, 1997. "How to Compete: The Impact of Workplace Practices and Information Technology on Productivity," CEP Discussion Papers dp0376, Centre for Economic Performance, LSE.
  7. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-in-Differences Estimates?," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 249-275, February.
  8. Jonathan Guryan & Kory Kroft & Matt Notowidigdo, 2007. "Peer Effects in the Workplace: Evidence from Random Groupings in Professional Golf Tournaments," NBER Working Papers 13422, National Bureau of Economic Research, Inc.
  9. Konings, Jozef & Vanormelingen, Stijn, 2009. "The Impact of Training on Productivity and Wages: Firm Level Evidence," CEPR Discussion Papers 7473, C.E.P.R. Discussion Papers.
  10. Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2006. "Incentives for Managers and Inequality Among Workers: Evidence from a Firm Level Experiment," CEPR Discussion Papers 5649, C.E.P.R. Discussion Papers.
  11. Goux, Dominique & Maurin, Eric, 2000. "Returns to firm-provided training: evidence from French worker-firm matched data1," Labour Economics, Elsevier, vol. 7(1), pages 1-19, January.
  12. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Wiley Blackwell, vol. 60(3), pages 531-42, July.
  13. Kathryn Shaw & Edward P. Lazear, 2007. "Tenure and Output," NBER Working Papers 13652, National Bureau of Economic Research, Inc.
  14. Xiangmin Liu & Rosemary Batt, 2007. "The Economic Pay-Offs to Informal Training: Evidence from Routine Service Work," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 61(1), pages 75-89, October.
  15. Ann P. Bartel, 1992. "Training, Wage Growth and Job Performance: Evidence From a Company Database," NBER Working Papers 4027, National Bureau of Economic Research, Inc.
  16. Bartel, Ann P, 1995. "Training, Wage Growth, and Job Performance: Evidence from a Company Database," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 401-25, July.
  17. Breuer, Kathrin & Nieken, Petra & Sliwka, Dirk, 2010. "Social Ties and Subjective Performance Evaluations: An Empirical Investigation," IZA Discussion Papers 4913, Institute for the Study of Labor (IZA).
  18. Casey Ichniowski & Kathryn L. Shaw, 2009. "Insider Econometrics: Empirical Studies of How Management Matters," NBER Working Papers 15618, National Bureau of Economic Research, Inc.
  19. Schwerdt, Guido & Messer, Dolores & Woessmann, Ludger & Wolter, Stefan C., 2011. "Effects of Adult Education Vouchers on the Labor Market: Evidence from a Randomized Field Experiment," IZA Discussion Papers 5431, Institute for the Study of Labor (IZA).
  20. Edwin Leuven & Hessel Oosterbeek, 2008. "An alternative approach to estimate the wage returns to private-sector training," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(4), pages 423-434.
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Cited by:
  1. Dohmen, Thomas, 2014. "Behavioural Labour Economics: Advances and Future Directions," IZA Discussion Papers 8263, Institute for the Study of Labor (IZA).
  2. Grip Andries de & Sauermann Jan & Sieben Inge, 2011. "The role of peers in estimating tenure-performance profiles: evidence from personnel data," Research Memorandum 052, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).

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