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The effects of training on own and co-worker productivity: Evidence from a field experiment

  • Andries de Grip
  • Jan Sauermann

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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Paper provided by The Field Experiments Website in its series Natural Field Experiments with number 00228.

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Date of creation: 2011
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Handle: RePEc:feb:natura:00228
Contact details of provider: Web page: http://www.fieldexperiments.com

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  1. Imran Rasul & Iwan Barankay & Orana Bandiera, 2006. "Incentives for managers and inequality among workers: Evidence from a firm level experiment," Natural Field Experiments 00213, The Field Experiments Website.
  2. Guido Schwerdt & Dolores Messer & Ludger Woessmann & Stefan C. Wolter, 2011. "Effects of Adult Education Vouchers on the Labor Market: Evidence from a Randomized Field Experiment," CESifo Working Paper Series 3331, CESifo Group Munich.
  3. Sandra E. Black & Lisa M. Lynch, 2001. "How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 434-445, August.
  4. Thomas Zwick, 2003. "The Impact of ICT Investment on Establishment Productivity," National Institute Economic Review, National Institute of Economic and Social Research, vol. 184(1), pages 99-110, April.
  5. Daniel Parent, 2003. "Employer-supported training in Canada and its impact on mobility and wages," Empirical Economics, Springer, vol. 28(3), pages 431-459, July.
  6. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
  7. Lorraine Dearden & Howard Reed & John Van Reenen, 2005. "The Impact of Training on Productivity and Wages: Evidence from British Panel Data," CEP Discussion Papers dp0674, Centre for Economic Performance, LSE.
  8. Edwin Leuven & Hessel Oosterbeek, 2008. "An alternative approach to estimate the wage returns to private-sector training," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(4), pages 423-434.
  9. Goux, Dominique & Maurin, Eric, 2000. "Returns to firm-provided training: evidence from French worker-firm matched data1," Labour Economics, Elsevier, vol. 7(1), pages 1-19, January.
  10. Jonathan Guryan & Kory Kroft & Matt Notowidigdo, 2007. "Peer Effects in the Workplace: Evidence from Random Groupings in Professional Golf Tournaments," NBER Working Papers 13422, National Bureau of Economic Research, Inc.
  11. Jozef Konings & Stijn Vanormelingen, 2009. "The Impact of Training on Productivity and Wages: Firm Level Evidence," LICOS Discussion Papers 24409, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  12. Casey Ichniowski & Kathryn L. Shaw, 2009. "Insider Econometrics: Empirical Studies of How Management Matters," NBER Working Papers 15618, National Bureau of Economic Research, Inc.
  13. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA).
  14. Bartel, Ann P, 1995. "Training, Wage Growth, and Job Performance: Evidence from a Company Database," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 401-25, July.
  15. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Wiley Blackwell, vol. 60(3), pages 531-42, July.
  16. Shaw, Kathryn & Lazear, Edward P., 2008. "Tenure and output," Labour Economics, Elsevier, vol. 15(4), pages 704-723, August.
  17. Xiangmin Liu & Rosemary Batt, 2007. "The Economic Pay-Offs to Informal Training: Evidence from Routine Service Work," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 61(1), pages 75-89, October.
  18. Armin Falk & Andrea Ichino, 2004. "Clean Evidence on Peer Effects," Levine's Bibliography 666156000000000439, UCLA Department of Economics.
  19. Ann P. Bartel, 1992. "Training, Wage Growth and Job Performance: Evidence From a Company Database," NBER Working Papers 4027, National Bureau of Economic Research, Inc.
  20. Breuer, Kathrin & Nieken, Petra & Sliwka, Dirk, 2010. "Social Ties and Subjective Performance Evaluations: An Empirical Investigation," IZA Discussion Papers 4913, Institute for the Study of Labor (IZA).
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