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Productivity Gains From the Implementation of Employee Training Programs

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  • Ann P. Bartel
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    Abstract

    This paper utilizes data on the personnel policies and economic characteristics of businesses in the manufacturing sector to study the relationship between employee training and labor productivity. The major finding is that businesses that were operating below their expected labor productivity levels in 1983 implemented new employee training programs after 1983 which resulted in significantly larger increases in labor productivity growth between 1983 and 1986. This higher rate of productivity growth was sufficient to bring these businesses up to the labor productivity levels of comparable businesses by 1986. The positive effects of training implementation on productivity growth were shown to be inconsistent with a "Hawthorne Effect" interpretation because the implementation of new personnel policies other than training did not have significant effects on productivity growth.

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    File URL: http://www.nber.org/papers/w3893.pdf
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    Bibliographic Info

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3893.

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    Date of creation: Nov 1991
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    Publication status: published as Industrial Relations, vol. 33, no. 4 October 1994
    Handle: RePEc:nbr:nberwo:3893

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    1. Bishop, John H, 1990. "Job Performance, Turnover, and Wage Growth," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 8(3), pages 363-86, July.
    2. Lisa M. Lynch, 1989. "Private Sector Training and its Impact on the Earnings of Young Workers," NBER Working Papers 2872, National Bureau of Economic Research, Inc.
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    Cited by:
    1. Heckman, James J., 2000. "Policies to foster human capital," Research in Economics, Elsevier, Elsevier, vol. 54(1), pages 3-56, March.
    2. Perli, Roberto & Sakellaris, Plutarchos, 1998. "Human capital formation and business cycle persistence," Journal of Monetary Economics, Elsevier, Elsevier, vol. 42(1), pages 67-92, June.
    3. S. Black & L. Lynch, 1997. "How to compete: the impact of workplace practices and information technology on productivity," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 20298, London School of Economics and Political Science, LSE Library.
    4. Aurora Amélia Castro Teixeira & Pedro Cosme Vieira, 2004. "Is Portuguese regional growth schumpeterian? An empirical assessment of the relation between schooling, firm destruction and firm productivity," ERSA conference papers ersa04p134, European Regional Science Association.
    5. Richard Blundell & Lorraine Dearden & Costas Meghir & Barbara Sianesi, 1999. "Human capital investment: the returns from education and training to the individual, the firm and the economy," Fiscal Studies, Institute for Fiscal Studies, vol. 20(1), pages 1-23, March.
    6. Wolbers,M., 2001. "Learning and Working: Double Statuses in Youth Transitions within the European Union," ROA Research Memorandum, Maastricht University, Research Centre for Education and the Labour Market (ROA) 006, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    7. Juliana Helo, 2011. "Una evaluación de los programas de estabilización para la población desplazada en Colombia - estimación de un modelo estructural," DOCUMENTOS CEDE, UNIVERSIDAD DE LOS ANDES-CEDE 008915, UNIVERSIDAD DE LOS ANDES-CEDE.
    8. O'Connell, Philip J. & Lyons, Maureen, 1995. "Enterprise-Related Training and State Policy in Ireland: The Training Support Scheme," Research Series, Economic and Social Research Institute (ESRI), Economic and Social Research Institute (ESRI), number PRS25.
    9. James J. Heckman & Dimitriy V. Masterov, 2005. "Skill Policies for Scotland," CESifo Working Paper Series 1390, CESifo Group Munich.
    10. James J. Heckman & Dimitriy V. Masterov, 2005. "Allander Series: Skill Policies for Scotland," NBER Working Papers 11032, National Bureau of Economic Research, Inc.
    11. Lisa M Lynch & Sandra E Black, 2002. "Beyond the Incidence of Training: Evidence from a National Employers Survey," Working Papers 02-05, Center for Economic Studies, U.S. Census Bureau.
    12. Mark Schonewille, 2004. "Qualitative Efficiency Assessment of Markets: An Institutional Approach to Training," HEW, EconWPA 0405006, EconWPA.

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