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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 - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:572
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    File URL: https://www.econstor.eu/bitstream/10419/24607/1/dp0250.pdf
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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 for the Study of Labor (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. 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, vol. 31(4), pages 426-448, July.
    4. Inge Sieben, 2007. "Does training trigger turnover - or not?," Work, Employment & Society, British Sociological Association, vol. 21(3), pages 397-416, September.
    5. 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.
    6. Kuckulenz, Anja, 2006. "Wage and Productivity Effect of Continuing Training in Germany: A Sectoral Analysis," ZEW Discussion Papers 06-025, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    7. Zwick, Thomas, 2004. "Employee participation and productivity," Labour Economics, Elsevier, vol. 11(6), pages 715-740, December.
    8. John T. Addison, 2005. "The Determinants of Firm Performance: Unions, Works Councils, and Employee Involvement/High Performance Work Practices," GEMF Working Papers 2005-03, GEMF, Faculty of Economics, University of Coimbra.
    9. Conti, Gabriella, 2005. "Training, productivity and wages in Italy," Labour Economics, Elsevier, vol. 12(4), pages 557-576, August.
    10. Pfeifer, Christian & Janssen, Simon & Yang, Philip & Backes-Gellner, Uschi, 2011. "Effects of Training on Employee Suggestions and Promotions in an Internal Labor Market," IZA Discussion Papers 5671, Institute for the Study of Labor (IZA).
    11. 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.
    12. Thomas Zwick, 2005. "Continuing Vocational Training Forms and Establishment Productivity in Germany," German Economic Review, Verein für Socialpolitik, vol. 6(2), pages 155-184, May.
    13. Anita Wölfl & Juan S. Mora-Sanguinetti, 2011. "Reforming the Labour Market in Spain," OECD Economics Department Working Papers 845, OECD Publishing.
    14. 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.
    15. Budría, Santiago & Pereira, Pedro T., 2004. "On the Returns to Training in Portugal," IZA Discussion Papers 1429, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Training; Firm Productivity; Panel Estimation;

    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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