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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 effects of work-related training on worker productivity. To identify the causal effects from training, we combine a field experiment that randomly assigns workers to treatment and control groups with panel data on individual worker performance before and after training. We find that participation in the training programme leads to a 10 percent increase in performance. Moreover, we provide experimental evidence for externalities from treated workers on their untreated teammates: An increase of 10 percentage points in the share of treated peers leads to a performance increase of 0.51 percent. We provide evidence that the estimated effects are causal and not the result of employee selection into and out of training. Furthermore, we find that the performance increase is not due to lower quality provided by the worker.

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Paper provided by The Field Experiments Website in its series Natural Field Experiments with number 00228.

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Date of creation: 2011
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Handle: RePEc:feb:natura:00228

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  1. 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).
  2. 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.
  3. 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.
  4. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-in-Differences Estimates?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 119(1), pages 249-275, February.
  5. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 60(3), pages 531-42, July.
  6. Guido Schwerdt & Dolores Messer & Ludger Woessmann & Stefan C. Wolter, 2011. "Effects of Adult Education Vouchers on the Labor Market: Evidence from a Randomized Field Experiment," CESifo Working Paper Series 3331, CESifo Group Munich.
  7. Konings, Jozef & Vanormelingen, Stijn, 2009. "The Impact of Training on Productivity and Wages: Firm Level Evidence," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7473, C.E.P.R. Discussion Papers.
  8. Casey Ichniowski & Kathryn L. Shaw, 2009. "Insider Econometrics: Empirical Studies of How Management Matters," NBER Working Papers 15618, National Bureau of Economic Research, Inc.
  9. Orana Bandiera & Iwan Barankay & Imran Rasul, 2006. "Incentives for managers and inequality among workers: Evidence from a firm level experiment," Natural Field Experiments, The Field Experiments Website 00213, The Field Experiments Website.
  10. Lorraine Dearden & Howard Reed & John Van Reenen, 2005. "The impact of training on productivity and wages: evidence from British panel data," IFS Working Papers, Institute for Fiscal Studies W05/16, Institute for Fiscal Studies.
  11. Goux, Dominique & Maurin, Eric, 2000. "Returns to firm-provided training: evidence from French worker-firm matched data1," Labour Economics, Elsevier, Elsevier, vol. 7(1), pages 1-19, January.
  12. Bartel, Ann P, 1995. "Training, Wage Growth, and Job Performance: Evidence from a Company Database," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 13(3), pages 401-25, July.
  13. Daniel Parent, 2003. "Employer-supported training in Canada and its impact on mobility and wages," Empirical Economics, Springer, Springer, vol. 28(3), pages 431-459, July.
  14. Armin Falk & Andrea Ichino, 2006. "Clean Evidence on Peer Effects," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 24(1), pages 39-58, January.
  15. 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).
  16. 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.
  17. 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., John Wiley & Sons, Ltd., vol. 23(4), pages 423-434.
  18. Thomas Zwick, 2003. "The Impact of ICT Investment on Establishment Productivity," National Institute Economic Review, National Institute of Economic and Social Research, National Institute of Economic and Social Research, vol. 184(1), pages 99-110, April.
  19. Kathryn Shaw & Edward P. Lazear, 2007. "Tenure and Output," NBER Working Papers 13652, National Bureau of Economic Research, Inc.
  20. 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.
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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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