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Returns to On-the-Job Soft Skills Training

Author

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  • Achyuta Adhvaryu
  • Namrata Kala
  • Anant Nyshadham

Abstract

We estimate productivity gains of 13.5% from workplace soft skills training among Indian garment workers. Productivity gains are greater when trainees work on joint operations alongside other coworkers, consistent with gains being driven by improved teamwork and collaboration. Furthermore, untreated coworkers on the treated production lines also show increased productivity. These improvements in the teamwork substitute for managerial attention. Despite productivity gains and higher promotion probabilities among treated workers, there are no effects on wages or retention, consistent with frictions in this labor market. Consequently, the net return to the firm was large: 256% 8 months after program completion.

Suggested Citation

  • Achyuta Adhvaryu & Namrata Kala & Anant Nyshadham, 2023. "Returns to On-the-Job Soft Skills Training," Journal of Political Economy, University of Chicago Press, vol. 131(8), pages 2165-2208.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/724320
    DOI: 10.1086/724320
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    Citations

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    Cited by:

    1. M. Antonella Mancino, Leonardo Fabio Morales, Diego F. Salazar, 2024. "Signaling Worker Quality in a Developing Country: Lessons from a Certification Program," LCERPA Working Papers bm0143, Laurier Centre for Economic Research and Policy Analysis.
    2. Allemand,Mathias & Kirchberger,Martina & Sveta Milusheva & Newman,Carol Frances & Roberts,Brent & Thorne,Vincent, 2023. "Conscientiousness and Labor Market Returns : Evidence from a Field Experiment in West Africa," Policy Research Working Paper Series 10378, The World Bank.
    3. Cheng, Wenyin & Ouyang, Xin & Yu, Anqi & Shen, Zhiyang & Vardanyan, Michael, 2024. "Subjective perceptions versus objective outcomes: Assessing the impact of smart city pilots on environmental quality in China," Technological Forecasting and Social Change, Elsevier, vol. 209(C).
    4. Diego Javier Ubfal, 2023. "What Works in Supporting Women-led Businesses?," World Bank Publications - Reports 38564, The World Bank Group.
    5. Gensowski, Miriam & Gørtz, Mette, 2024. "The education-health gradient: Revisiting the role of socio-emotional skills," Journal of Health Economics, Elsevier, vol. 97(C).
    6. Mehic, Adrian & Mosaddegh, Arian, 2025. "The Impact of Firm-Influenced Vocational Education on Labor Market and Demographic Outcomes," Working Paper Series 1524, Research Institute of Industrial Economics, revised 14 Apr 2025.
    7. Samuel Luethi, 2024. "Classroom versus workbench: Labour market effects of firm-based learning," Economics of Education Working Paper Series 0227, University of Zurich, Department of Business Administration (IBW).
    8. Falck, Oliver & Guo, Yuchen & Langer, Christina & Lindlacher, Valentin & Wiederhold, Simon, 2024. "Training, automation, and wages: International worker-level evidence," IWH Discussion Papers 27/2024, Halle Institute for Economic Research (IWH).
    9. Brudevold-Newman,Andrew Peter & Ubfal,Diego Javier, 2023. "Returns to Soft Skills Training in Rwanda," Policy Research Working Paper Series 10489, The World Bank.
    10. Muller,Noel & Fruttero,Anna & Calvo-Gonzalez,Oscar & De Hoop,Jacobus Joost, 2024. "Policies for Aspirations. And Opportunities," Policy Research Working Paper Series 10790, The World Bank.
    11. M. Antonella Mancino & Leonardo Fabio Morales & Diego F. Salazar, 2023. "Signaling Worker Quality in a Developing Country: Lessons from a Certification Program," Borradores de Economia 1259, Banco de la Republica de Colombia.
    12. Chowdhury, Shyamal & Hasan, Syed & Sharma, Uttam, 2024. "The Role of Trainee Selection in the Effectiveness of Vocational Training: Evidence from a Randomized Controlled Trial in Nepal," IZA Discussion Papers 16705, Institute of Labor Economics (IZA).
    13. Brudevold-Newman, Andrew & Ubfal, Diego, 2024. "Soft-skills, networking, and workforce entry: Impacts of a training program for recent graduates in Rwanda," Labour Economics, Elsevier, vol. 91(C).

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