Does Training Generally Work? The Returns to In-Company Training
This paper applies the familiar theoretical distinction between general and specific training to the empirical task of estimating the returns to in-company training. Given the theoretical prediction that employees who receive general training are more likely to quit, the productivity effects of general training should be lower than those of specific training. Using a firm-level dataset which distinguishes between general and specific training, we test for the relative effects of the two types of training on productivity growth. We find, contrary to expectations, that although general training has a statistically positive effect on productivity growth, no such effect is observable for specific training. This positive effect of general training remains when we control for changes in work organization and corporate restructuring. Moreover, the impact of general training varies positively with the level of capital investment.
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- Sandra E. Black & Lisa M. Lynch, 1997.
"How to Compete: The Impact of Workplace Practices and Information Technology on Productivity,"
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"Beyond the Incidence of Training: Evidence from a National Employers Survey,"
02-05, Center for Economic Studies, U.S. Census Bureau.
- Lisa M. Lynch & Sandra E. Black, 1995. "Beyond the Incidence of Training: Evidence from a National Employers Survey," NBER Working Papers 5231, National Bureau of Economic Research, Inc.
- Harry J. Holzer & Richard Block & Marcus Cheatham & Jack H. Knott, 1993. "Are training subsidies for firms effective? The Michigan experience," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(4), pages 625-636, July.
- Lynch, Lisa M, 1992. "Private-Sector Training and the Earnings of Young Workers," American Economic Review, American Economic Association, vol. 82(1), pages 299-312, March.
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