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Worker Beliefs about Firm Training

Author

Listed:
  • Hanna Brosch

    (Technical University of Munich, TUM School of Management, Heilbronn Campus)

  • Philipp Lergetporer

    (Technical University of Munich, TUM School of Management, Heilbronn Campus)

  • Florian Schoner

    (ifo Institute and University of Munich)

Abstract

Firm training is key to meeting changing skill demands, yet little is known about the role of workers’ beliefs in shaping training participation. In a survey of 3,701 workers in Germany, we document that they expect substantial returns to firm training – both in terms of earnings and non-pecuniary outcomes such as promotion chances, job task complexity, or enjoyment. These beliefs predict actual and intended training participation. Lower-skilled workers anticipate smaller non-pecuniary returns, partly explaining their lower uptake. An information treatment addressing return beliefs significantly increases training intentions among lower-skilled workers, suggesting that targeting beliefs may help narrow participation gaps between lower- and higher-skilled workers.

Suggested Citation

  • Hanna Brosch & Philipp Lergetporer & Florian Schoner, 2025. "Worker Beliefs about Firm Training," Munich Papers in Political Economy 44, Munich School of Politics and Public Policy and the School of Management at the Technical University of Munich.
    • Handle: RePEc:aiw:wpaper:44
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    File URL: https://www.mgt.tum.de/fileadmin/mgt.tum.de/faculty_and_research/mppe/44_Worker_Beliefs_Training.pdf
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    More about this item

    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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