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Evaluating the impact of manufacturing extension on productivity growth

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  • Ronald S. Jarmin

    (Center for Economic Studies, U.S. Bureau of the Census)

Abstract

This article combines the richest data set and most rigorous econometric methodology used, to date, to evaluate the impact of manufacturing extension services on client productivity growth. Client plants are identified in the Longitudinal Research Database (LRD) and their labor productivity growth between 1987 and 1992 is compared to nonclients. Both simple OLS and two-stage models are used to estimate the effect of manufacturing extension on productivity growth. The first-stage probit model is informative about the client selection process. Results suggest that participation in manufacturing extension is associated with between 3.4 and 16 percent higher labor productivity growth between 1987 and 1992. The article demonstrates the usefulness of longitudinal microdata sets, such as the LRD, for program evaluation. © 1998 by the Association for Public Policy Analysis and Management

Suggested Citation

  • Ronald S. Jarmin, 1999. "Evaluating the impact of manufacturing extension on productivity growth," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(1), pages 99-119.
    • Handle: RePEc:wly:jpamgt:v:18:y:1999:i:1:p:99-119
    DOI: 10.1002/(SICI)1520-6688(199924)18:1<99::AID-PAM6>3.0.CO;2-S
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    References listed on IDEAS

    as
    1. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-620, September.
    2. Luria, Dan & Wiarda, Edith, 1996. "Performance benchmarking and measuring program impacts on customers: lessons from the Midwest Manufacturing Technology Center," Research Policy, Elsevier, vol. 25(2), pages 233-246, March.
    3. Ron Jarmin, 1995. "Using Matched Client And Census Data To Evaluate The Performance Of The Manufacturing Extension Partnership," Working Papers 95-7, Center for Economic Studies, U.S. Census Bureau.
    4. James J. Heckman & V. Joseph Hotz & Marcelo Dabos, 1987. "Do We Need Experimental Data To Evaluate the Impact of Manpower Training On Earnings?," Evaluation Review, , vol. 11(4), pages 395-427, August.
    5. Irwin Feller, 1993. "What agricultural extension has to offer as a model for manufacturing modernization," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 12(3), pages 574-581.
    6. Robert Moffitt, 1991. "Program Evaluation With Nonexperimental Data," Evaluation Review, , vol. 15(3), pages 291-314, June.
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