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Effects of Training on Employee Suggestions and Promotions in an Internal Labor Market

  • Christian Pfeifer


    (Institute of Economics, Leuphana University Lueneburg, Germany)

  • Simon Janssen

    (University Zurich, Institute for Strategy and Business Economics, Switzerland)

  • Philip Yang

    (Leibniz University Hannover, Institute of Labor Economics, Germany)

  • Uschi Backes-Gellner

    (University Zurich, Institute for Strategy and Business Economics, Switzerland)

We evaluate the effects of employer-provided formal training on employee suggestions for productivity improvements and on promotions among male blue-collar workers. More than twenty years of personnel data of four entry cohorts in a German company allow us to address issues such as unobserved heterogeneity and the length of potential training effects. Our main finding is that workers have larger probabilities to make suggestions and to be promoted after they have received formal training. The effect on suggestions is however only short term. Promotion probabilities are largest directly after training but also seem to be affected in the long term.

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Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 202.

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Length: 33 pages
Date of creation: Apr 2011
Date of revision:
Handle: RePEc:lue:wpaper:202
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  8. Jonathan R. Veum, 1995. "Sources of training and their impact on wages," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(4), pages 812-826, July.
  9. Zwick, Thomas, 2002. "Continuous Training and Firm Productivity in Germany," ZEW Discussion Papers 02-50, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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  14. Harley Frazis & Mark A. Loewenstein, 2005. "Reexamining the Returns to Training: Functional Form, Magnitude, and Interpretation," Journal of Human Resources, University of Wisconsin Press, vol. 40(2).
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