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Does Training Generally Work? The Returns to In-Company Training

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Author Info
Barrett, Alan

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Abstract

This paper applies the familiar theoretical distinction between general and specific training to the empirical task of estimating the returns to in-company training. Given the theoretical prediction that employees who receive general training are more likely to quit, the productivity effects of general training should be lower than those of specific training. Using a firm-level dataset which distinguishes between general and specific training, we test for the relative effects of the two types of training on productivity growth. We find, contrary to expectations, that although general training has a statistically positive effect on productivity growth, no such effect is observable for specific training. This positive effect of general training remains when we control for changes in work organization and corporate restructuring. Moreover, the impact of general training varies positively with the level of capital investment.

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Publisher Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1879.

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Date of creation: Jun 1998
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Handle: RePEc:cpr:ceprdp:1879

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Related research
Keywords: General Training; in-company training; specific training;

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Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Lynch, Lisa M, 1992. "Private-Sector Training and the Earnings of Young Workers," American Economic Review, American Economic Association, vol. 82(1), pages 299-312, March.
  2. Sandra E. Black & Lisa M. Lynch, 1997. "How to Compete: The Impact of Workplace Practices and Information Technology on Productivity," NBER Working Papers 6120, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Harry J. Holzer & Richard Block & Marcus Cheatham & Jack H. Knott, 1993. "Are training subsidies for firms effective? The Michigan experience," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 46(4), pages 625-636, July.
  4. Black, Sandra E & Lynch, Lisa M, 1996. "Human-Capital Investments and Productivity," American Economic Review, American Economic Association, vol. 86(2), pages 263-67, May. [Downloadable!] (restricted)
  5. Casey Ichniowski & Kathryn Shaw & Giovanna Prennushi, 1995. "The Effects of Human Resource Management Practices on Productivity," NBER Working Papers 5333, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Lisa M. Lynch & Sandra E. Black, 1995. "Beyond the Incidence of Training: Evidence from a National Employers Survey," NBER Working Papers 5231, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Patrick Laplagne & Leonie Bensted, 2002. "The role of training and innovation in workplace performance," Labor and Demography 0207005, EconWPA. [Downloadable!]
  2. Colleen N. Flaherty, 2007. "The Effect of Tuition Reimbursement on Turnover: A Case Study Analysis," NBER Working Papers 12975, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Rita Asplund, 2005. "The Provision and Effects of Company Training: A Brief Review of the Literature," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 47-73. [Downloadable!]
  4. Addison, John T. & Belfield, Clive R., 2004. "Unions, Training, and Firm Performance: Evidence from the British Workplace Employee Relations Survey," IZA Discussion Papers 1264, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Gérard Ballot & Fathi Fakhfakh & Erol Taymaz, 2002. "Who benefits from training and R&D: The firm or the workers? A study on panels of French and Swedish firms," ERC Working Papers 0201, ERC - Economic Research Center, Middle East Technical University, revised Jan 2002. [Downloadable!]
  6. Rita Almeida & Pedro Carneiro, 2006. "The Return to the Firm Investment in Human Capital," IZA Discussion Papers 1937, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Rita Asplund, 2004. "The Provision and Effects of Company Training. A brief review of the literature," Discussion Papers 907, The Research Institute of the Finnish Economy. [Downloadable!]
  8. Lopez-Acevedo, Gladys & Tinajero, Monica & Rubio, Marcela, 2005. "Mexico : human capital effects on wages and productivity," Policy Research Working Paper Series 3791, The World Bank. [Downloadable!]
  9. Lorraine Dearden & Howard Reed & John Van Reenen, 2005. "The impact of training on productivity and wages: evidence from British panel data," IFS Working Papers W05/16, Institute for Fiscal Studies. [Downloadable!]
    Other versions:
  10. Sergio Scicchitano, 2004. "Complementarity Between Heterogeneous Human Capital And R&D: Can Job-Training Avoid Low Development Traps?," Working Papers 70, Sapienza University of Rome, Department of Public Economics. [Downloadable!]
  11. Addison, John T. & Belfield, Clive R., 2008. "Unions, Training, and Firm Performance," IZA Discussion Papers 3294, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  12. Rita Almeida & Pedro Carneiro, 2005. "The return to firm investment in human capital," CeMMAP working papers CWP21/05, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
    Other versions:
  13. Lopez-Acevedo, Gladys, 2003. "Wages and productivity in Mexican manufacturing," Policy Research Working Paper Series 2964, The World Bank. [Downloadable!]
  14. Benoit Dostie & Marie-Pierre Pelletier, 2007. "Les rendements de la formation en entreprise," Canadian Public Policy, University of Toronto Press, vol. 33(1), pages 21-40, March. [Downloadable!] (restricted)
  15. Grip,Andries,de & Sieben,Inge, 2004. "The Effects of Human Resource Management on Workers' Wages and Firm Productivity," Research Memoranda 001, Maastricht : ROA, Research Centre for Education and the Labour Market. [Downloadable!]
  16. Yanick Labrie & Claude Montmarquette, 2005. "La formation qualifiante et transférable en milieu de travail," CIRANO Project Reports 2005rp-04, CIRANO. [Downloadable!]
  17. Sieben,Inge, 2005. "Does Training Trigger Turnover...or Not?," Research Memoranda 008, Maastricht : ROA, Research Centre for Education and the Labour Market. [Downloadable!]
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