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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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Suggested Citation

  • Andries De Grip & Jan Sauermann, 2012. "The Effects of Training on Own and Co‐worker Productivity: Evidence from a Field Experiment," Economic Journal, Royal Economic Society, vol. 122(560), pages 376-399, May.
  • Handle: RePEc:ecj:econjl:v:122:y:2012:i:560:p:376-399
    DOI: j.1468-0297.2012.02500.x
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    File URL: http://hdl.handle.net/10.1111/j.1468-0297.2012.02500.x
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    Citations

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    Cited by:

    1. Maria Ferreira & Annemarie Künn-Nelen & Andries De Grip, 2017. "Work-Related Learning and Skill Development in Europe: Does Initial Skill Mismatch Matter?," Research in Labor Economics,in: Skill Mismatch in Labor Markets, volume 45, pages 345-407 Emerald Publishing Ltd.
    2. De Grip, Andries & Sauermann, Jan & Sieben, Inge, 2016. "The role of peers in estimating tenure-performance profiles: Evidence from personnel data," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PA), pages 39-54.
    3. Collewet, Marion & Sauermann, Jan, 2017. "Working hours and productivity," Labour Economics, Elsevier, vol. 47(C), pages 96-106.
    4. Montizaan R.M. & Grip A. de & Fouarge D., 2015. "Training access, reciprocity, and expected retirement age," Research Memorandum 005, Maastricht University, Graduate School of Business and Economics (GSBE).
    5. Peters, Jörg & Langbein, Jörg & Roberts, Gareth, 2016. "Policy evaluation, randomized controlled trials, and external validity—A systematic review," Economics Letters, Elsevier, vol. 147(C), pages 51-54.
    6. Andreas Georgiadis & Christos N. Pitelis, 2016. "The Impact of Employees' and Managers' Training on the Performance of Small- and Medium-Sized Enterprises: Evidence from a Randomized Natural Experiment in the UK Service Sector," British Journal of Industrial Relations, London School of Economics, vol. 54(2), pages 409-421, June.
    7. Jansen, Anika & Pfeifer, Harald & Raecke, Julia, "undated". "Only the brave? Risk and time preferences of decision makers and firms’ investment in worker training," Research Memorandum 004, Maastricht University, Graduate School of Business and Economics (GSBE).
    8. Dohmen, Thomas, 2014. "Behavioral labor economics: Advances and future directions," Labour Economics, Elsevier, vol. 30(C), pages 71-85.
    9. Lindquist, Matthew & Sauermann, Jan & Zenou, Yves, 2015. "Network Effects on Worker Productivity," CEPR Discussion Papers 10928, C.E.P.R. Discussion Papers.
    10. Sauermann, Jan, 2015. "Worker Reciprocity and the Returns to Training: Evidence from a Field Experiment," IZA Discussion Papers 9179, Institute for the Study of Labor (IZA).
    11. Verónica Alaimo & Mariano Bosch & David S. Kaplan & Carmen Pagés & Laura Ripani, 2015. "Jobs for Growth," IDB Publications (Books), Inter-American Development Bank, number 90977, February.
    12. Dauth, Christine, 2017. "Regional discontinuities and the effectiveness of further training subsidies for low-skilled employees," IAB Discussion Paper 201707, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    13. Thomas Cornelissen, 2016. "Do social interactions in the workplace lead to productivity spillover among co-workers?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 314-314, November.
    14. Rita Almeida & Reyes Aterido, 2015. "Investing in formal on-the-job training: are SMEs lagging much behind?," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-23, December.
    15. Andries de Grip, 2015. "The importance of informal learning at work," IZA World of Labor, Institute for the Study of Labor (IZA), pages 162-162, June.
    16. Thomas Cornelissen & Christian Dustmann & Uta Schönberg, 2017. "Peer Effects in the Workplace," American Economic Review, American Economic Association, vol. 107(2), pages 425-456, February.
    17. Jan Sauermann, 2016. "Performance measures and worker productivity," IZA World of Labor, Institute for the Study of Labor (IZA), pages 260-260, May.
    18. Alexander Spermann, 2016. "How can temporary work agencies provide more training?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 251-251, April.
    19. Dauth, Christine, 2016. "Do low-skilled employed workers benefit from further training subsidies?," Annual Conference 2016 (Augsburg): Demographic Change 145533, Verein für Socialpolitik / German Economic Association.
    20. Sauermann, Jan, 2014. "The Heterogeneous Effects of Bonus Pay on Performance Outcomes: Evidence from Personnel Data," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100568, Verein für Socialpolitik / German Economic Association.
    21. René Böheim, 2015. "Betriebliche Weiterbildung in österreichischen Unternehmen," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 41(3), pages 335-357.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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