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Formal Employee Training Programs and Their Impact on Labor Produc- tivity: Evidence from a Human Resources Survey

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  • Ann P. Bartel

Abstract

Although economic models of training decisions are framed in terms of a company's calculation of the costs and benefits of such training, empirical work has never been able to test this model directly on company behavior. This paper utilizes a unique database to analyze the determinants of the variation in formal training across businesses and the impact of such training on labor productivity. Major findings are that large businesses, those introducing new technology end those who rely on internal promotions to fill vacancies are more likely to have formal training programs. Formal training is found to have a positive effect on labor productivity.

Suggested Citation

  • Ann P. Bartel, 1989. "Formal Employee Training Programs and Their Impact on Labor Produc- tivity: Evidence from a Human Resources Survey," NBER Working Papers 3026, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:3026 Note: LS
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    References listed on IDEAS

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    1. James N. Brown, 1983. "Are Those Paid More Really No More Productive? Measuring the Relative Importance of Tenure Versus On-The-Job Training in Explaining Wage Growth," Working Papers 549, Princeton University, Department of Economics, Industrial Relations Section..
    2. Bartel, Ann P & Lichtenberg, Frank R, 1987. "The Comparative Advantage of Educated Workers in Implementing New Technology," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 1-11, February.
    3. Lisa M. Lynch, 1989. "Private Sector Training and its Impact on the Earnings of Young Workers," NBER Working Papers 2872, National Bureau of Economic Research, Inc.
    4. Barron, John M & Black, Dan A & Loewenstein, Mark A, 1987. "Employer Size: The Implications for Search, Training, Capital Investment, Starting Wages, and Wage Growth," Journal of Labor Economics, University of Chicago Press, vol. 5(1), pages 76-89, January.
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    Cited by:

    1. Sandra E. Black & Lisa M. Lynch, 2005. "Measuring Organizational Capital in the New Economy," NBER Chapters,in: Measuring Capital in the New Economy, pages 205-236 National Bureau of Economic Research, Inc.
    2. Ann P. Bartel & Nachum Sicherman, 1990. "Technological Change and the Careers of Older Workers," NBER Working Papers 3433, National Bureau of Economic Research, Inc.
    3. Juárez, Miriam & Padilla, Ramón, 2007. "Effects of training on competitiveness in the manufacturing sector," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    4. Baldwin, John R. & Gray, Tara & Johnson, Joanne, 1995. "Technology Use, Training and Plant-specific Knowledge in Manufacturing Establishments," Analytical Studies Branch Research Paper Series 1995086e, Statistics Canada, Analytical Studies Branch.
    5. 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.
    6. Lisa M. Lynch, 1994. "Introduction to "Training and the Private Sector"," NBER Chapters,in: Training and the Private Sector: International Comparisons, pages 1-24 National Bureau of Economic Research, Inc.
    7. 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.
    8. Alba, Alfonso, 1991. "Formal trainning, temporary, contracts, productivity and wages in Spain," UC3M Working papers. Economics 2806, Universidad Carlos III de Madrid. Departamento de Economía.
    9. Lisa M. Lynch, 1992. "Differential Effects of Post-School Training on Early Career Mobility," NBER Working Papers 4034, National Bureau of Economic Research, Inc.
    10. Christiane Hinerasky & Rene Fahr, 2014. "Learning Outcomes, Feedback, and the Performance Effects of a Training Program," Working Papers Dissertations 16, Paderborn University, Faculty of Business Administration and Economics.
    11. Aurora Amélia Castro Teixeira & Pedro Cosme Vieira, 2004. "Is Portuguese regional growth schumpeterian? An empirical assessment of the relation between schooling, firm destruction and firm productivity," ERSA conference papers ersa04p134, European Regional Science Association.
    12. Yanick Labrie & Claude Montmarquette, 2005. "La formation qualifiante et transférable en milieu de travail," CIRANO Project Reports 2005rp-04, CIRANO.
    13. Peter Berg, 1994. "Strategic Adjustments in Training: A Comparative Analysis of the U.S. and German Automobile Industries," NBER Chapters,in: Training and the Private Sector: International Comparisons, pages 77-108 National Bureau of Economic Research, Inc.
    14. Lone Engbo Christiansen, 2008. "Do Technology Shocks Lead to Productivity Slowdowns? Evidence from Patent Data," IMF Working Papers 08/24, International Monetary Fund.
    15. Ballot, Gerard & Fakhfakh, Fathi & Taymaz, Erol, 2001. "Firms' human capital, R&D and performance: a study on French and Swedish firms," Labour Economics, Elsevier, vol. 8(4), pages 443-462, September.

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