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Continuous Training and Firm Productivity in Germany

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  • Zwick, Thomas

Abstract

This paper presents for the first time panel evidence on the productivity effects of training intensity and different training forms in Germany. It hereby takes account of selectivity of training activities, unobserved heterogeneity of establishments as well as omitted variable bias. Using the waves 1997 – 2000 of the IAB establishment panel, it is found that when the share of trained employees in 1997 is higher, productivity is significantly higher in the period 1997 - 1999. Formal internal and external courses have the highest positive impact on productivity, self-induced learning and quality circles have a smaller positive impact, while training on the job, seminars and talks and job rotation do not affect productivity. The decision to train is selective. Firms with an inefficient production structure deliberately use training in order to boost productivity.

Suggested Citation

  • Zwick, Thomas, 2002. "Continuous Training and Firm Productivity in Germany," ZEW Discussion Papers 02-50, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:572
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Addison, John T. & Belfield, Clive R., 2004. "Unions, Training, and Firm Performance: Evidence from the British Workplace Employee Relations Survey," IZA Discussion Papers 1264, Institute of Labor Economics (IZA).
    2. Ardiana N. Gashi & Geoff Pugh & Nick Adnett, 2008. "Technological change and employer-provided training: Evidence from German establishments," Economics of Education Working Paper Series 0026, University of Zurich, Department of Business Administration (IBW).
    3. Armbruster, Kathrin & Beckmann, Michael & Kuhn, Dieter, 2012. "Task Allocation and Corporate Performance : is There a First-Mover Advantage?," Working papers 2012/07, Faculty of Business and Economics - University of Basel.
    4. Ardiana N. Gashi & Geoff Pugh & Nick Adnett, 2010. "Technological change and employer‐provided training: evidence from UK workplaces," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(4), pages 426-448, July.
    5. Tafesse W. Gezahegn & Steven Passel & Tekeste Berhanu & Marijke D’Haese & Miet Maertens, 2025. "Enhancing land productivity through a better organization of irrigation cooperatives: evidence from Tigray, Ethiopia," Empirical Economics, Springer, vol. 68(6), pages 2705-2727, June.
    6. Inge Sieben, 2007. "Does training trigger turnover - or not?," Work, Employment & Society, British Sociological Association, vol. 21(3), pages 397-416, September.
    7. John T. Addison, 2005. "The Determinants Of Firm Performance: Unions, Works Councils, And Employee Involvement/High‐Performance Work Practices," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(3), pages 406-450, July.
    8. René Böheim, 2015. "Betriebliche Weiterbildung in österreichischen Unternehmen," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 41(3), pages 335-357.
    9. Teresa Backhaus, 2022. "Training in Late Careers - A Structural Approach," CRC TR 224 Discussion Paper Series crctr224_2022_382, University of Bonn and University of Mannheim, Germany.
    10. Kuckulenz, Anja, 2006. "Wage and Productivity Effect of Continuing Training in Germany: A Sectoral Analysis," ZEW Discussion Papers 06-025, ZEW - Leibniz Centre for European Economic Research.
    11. Zwick, Thomas, 2004. "Employee participation and productivity," Labour Economics, Elsevier, vol. 11(6), pages 715-740, December.
    12. Ehlert, Martin, 2017. "Who Benefits from Training Courses in Germany? Monetary Returns to Non-formal Further Education on a Segmented Labour Market," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 33(3), pages 436-448.
    13. Backhaus, Teresa, 2025. "Training in late careers — A structural approach," Labour Economics, Elsevier, vol. 93(C).
    14. Conti, Gabriella, 2005. "Training, productivity and wages in Italy," Labour Economics, Elsevier, vol. 12(4), pages 557-576, August.
    15. Asplund, Rita, 2004. "The Provision and Effects of Company Training. A brief review of the literature," Discussion Papers 907, The Research Institute of the Finnish Economy.
    16. Zwick Thomas, 2005. "Continuing Vocational Training Forms and Establishment Productivity in Germany," German Economic Review, De Gruyter, vol. 6(2), pages 155-184, May.
    17. Christian Pfeifer & Simon Janssen & Philip Yang & Uschi Backes-Gellner, 2011. "Effects of Training on Employee Suggestions and Promotions in an Internal Labor Market," Economics of Education Working Paper Series 0061, University of Zurich, Department of Business Administration (IBW).
    18. Sieben, I.J.P., 2005. "Does training trigger turnover...or not? : the impact of formal training on young men's and women's job search behaviour," ROA Research Memorandum 6E, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    19. Morimitsu Kurino & Yoshinori Kurokawa, 2024. "Job rotation or specialization? A dynamic matching model analysis," Review of Economic Design, Springer;Society for Economic Design, vol. 28(2), pages 243-273, June.
    20. Anita Wölfl & Juan S. Mora-Sanguinetti, 2011. "Reforming the Labour Market in Spain," OECD Economics Department Working Papers 845, OECD Publishing.
    21. Rita Asplund, 2005. "The Provision and Effects of Company Training: A Brief Review of the Literature," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 47-73.
    22. Inge Sieben, 2007. "Does training trigger turnover - or not?," Work, Employment & Society, British Sociological Association, vol. 21(3), pages 397-416, September.
    23. Budría, Santiago & Pereira, Pedro T., 2004. "On the Returns to Training in Portugal," IZA Discussion Papers 1429, Institute of Labor Economics (IZA).

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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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