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Effects of Training on Employee Suggestions and Promotions in an Internal Labor Market

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Author Info

  • Christian Pfeifer

    ()
    (Leuphana University Lueneburg, Institute of Economics; and IZA)

  • Simon Janssen

    ()
    (Department of Business Administration, University of Zurich)

  • Philip Yang

    (Leibniz University Hannover, Institute of Labor Economics)

  • Uschi Backes-Gellner

    ()
    (Department of Business Administration, University of Zurich)

Abstract

We evaluate the effects of employer-provided formal training on employee suggestions for productivity improvements and on promotions among male blue-collar workers. More than twenty years of personnel data of four entry cohorts in a German company allow us to address issues such as unobserved heterogeneity and the length of potential training effects. Our main finding is that workers have larger probabilities to make suggestions and to be promoted after they have received formal training. The effect on suggestions is however only short term. Promotion probabilities are largest directly after training but also seem to be affected in the long term.

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File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0061_lhwpaper.pdf
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Bibliographic Info

Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Economics of Education Working Paper Series with number 0061.

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Length: 30 pages
Date of creation: May 2011
Date of revision:
Handle: RePEc:iso:educat:0061

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Keywords: Human capital; Insider econometrics; Productivity; Promotions; Training;

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References

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Cited by:
  1. Katrin Breuer & Patrick Kampkoetter, 2012. "Do Employees Reciprocate to Intra-Firm Trainings? An Analysis of Absenteeism and Turnover Rates," Cologne Graduate School Working Paper Series 03-09, Cologne Graduate School in Management, Economics and Social Sciences.

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