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

  • Ann P. Bartel
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    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.

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    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3026.

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    Date of creation: Jul 1989
    Date of revision:
    Publication status: published as Market Failure in Training? New Economic Analysis and Evidence on Trainingof Adult Employees, ed. David Stern and Jozef Ritzen, Springer-Verlag 1991
    Handle: RePEc:nbr:nberwo:3026
    Note: LS
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    1. 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.
    2. 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.
    3. 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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