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The Impact of Firm-Provided Training on Production: Testing for Firm-Size Effects

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Author Info
Jan M.P. de Kok () (EIM Business & Policy Research, Zoetermeer, and Erasmus University Rotterdam)

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Abstract

The returns to firm-provided training depend on many different factors. Firm size is an important indicator of various of these factors, but recent research tends to neglect it. In this study the returns to firm-provided training are estimated, taking account of three possible firm-size effects: the HRM effect, selection effect and scale effect. Using panel data on 173 Dutch firms, support is found for the existence of the HRM effect: training support per working day (the average time a firm spends on setting up and coordinating a training program) has a positive influence on the returns to training. In the absence of training support, training has no effect on production. Since on average smaller firms provide less training support per working day, this implies that small firms benefit less from firm-provided training than their larger counterparts.

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 00-073/3.

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Date of creation: 29 Aug 2000
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Handle: RePEc:dgr:uvatin:20000073

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Web page: http://www.tinbergen.nl/

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  1. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June. [Downloadable!] (restricted)
  2. Corvers, Frank, 1997. "The Impact of Human Capital on Labour Productivity in Manufacturing Sectors of the European Union," Applied Economics, Taylor and Francis Journals, vol. 29(8), pages 975-87, August. [Downloadable!] (restricted)
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  3. Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 142-71, January. [Downloadable!] (restricted)
  4. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May. [Downloadable!] (restricted)
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  5. Romer, Paul M, 1987. "Growth Based on Increasing Returns Due to Specialization," American Economic Review, American Economic Association, vol. 77(2), pages 56-62, May. [Downloadable!] (restricted)
  6. Groot, Wim, 1999. "Productivity Effects of Enterprise-Related Training," Applied Economics Letters, Taylor and Francis Journals, vol. 6(6), pages 369-71, June. [Downloadable!] (restricted)
  7. John Bishop, 1994. "The Impact of Previous Training on Productivity and Wages," NBER Chapters, in: Training and the Private Sector, pages 161-200 National Bureau of Economic Research, Inc. [Downloadable!]
  8. 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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  9. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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