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Productivity Gains From the Implementation of Employee Training Programs

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  • Ann P. Bartel

Abstract

This paper utilizes data on the personnel policies and economic characteristics of businesses in the manufacturing sector to study the relationship between employee training and labor productivity. The major finding is that businesses that were operating below their expected labor productivity levels in 1983 implemented new employee training programs after 1983 which resulted in significantly larger increases in labor productivity growth between 1983 and 1986. This higher rate of productivity growth was sufficient to bring these businesses up to the labor productivity levels of comparable businesses by 1986. The positive effects of training implementation on productivity growth were shown to be inconsistent with a "Hawthorne Effect" interpretation because the implementation of new personnel policies other than training did not have significant effects on productivity growth.

Suggested Citation

  • Ann P. Bartel, 1991. "Productivity Gains From the Implementation of Employee Training Programs," NBER Working Papers 3893, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:3893
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    References listed on IDEAS

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    1. 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.
    2. Bishop, John H, 1990. "Job Performance, Turnover, and Wage Growth," Journal of Labor Economics, University of Chicago Press, vol. 8(3), pages 363-386, July.
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    Cited by:

    1. Mark Schonewille, 2004. "Qualitative Efficiency Assessment of Markets: An Institutional Approach to Training," HEW 0405006, University Library of Munich, Germany.
    2. Sandra E. Black & Lisa M. Lynch, 2001. "How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 434-445, August.
    3. O'Connell, Philip J. & Lyons, Maureen, 1995. "Enterprise-Related Training and State Policy in Ireland: The Training Support Scheme," Research Series, Economic and Social Research Institute (ESRI), number PRS25.
    4. Jyotirmayee Choudhury & B. B. Mishra, 2010. "Role of HR Architecture on Intellectual Capital," Vision, , vol. 14(1-2), pages 35-44, January.
    5. James Heckman, 2011. "Policies to foster human capital," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 3, pages 73-137.
    6. Lisa M. Lynch & Sandra E. Black, 1995. "Beyond the Incidence of Training: Evidence from a National Employers Survey," NBER Working Papers 5231, National Bureau of Economic Research, Inc.
    7. Brown, Clair & Reich, Michael & Stern, David, 1992. "Becoming a High-Performance Work Organization: The Role of Security, Employee Involvement, and Training," Department of Economics, Working Paper Series qt0pj25436, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    8. Wolbers M., 2001. "Learning and Working: Double Statuses in Youth Transitions within the European Union," ROA Research Memorandum 006, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    9. Aurora Amélia Castro Teixeira & Pedro Cosme Vieira, 2004. "Is Portuguese regional growth schumpeterian? An empirical assessment of the relation between schooling, firm destruction and firm productivity," ERSA conference papers ersa04p134, European Regional Science Association.
    10. Lucas Figal Garone & Paula A. López Villalba & Alessandro Maffioli & Christian A. Ruzzier, 2020. "Productivity differences among firms in Latin American and the Caribbean," Working Papers 136, Universidad de San Andres, Departamento de Economia, revised Jan 2020.
    11. James J. Heckman & Dimitriy V. Masterov, 2005. "Allander Series: Skill Policies for Scotland," NBER Working Papers 11032, National Bureau of Economic Research, Inc.
    12. Juliana Helo, 2011. "Una evaluación de los programas de estabilización para la población desplazada en Colombia - estimación de un modelo estructural," Documentos CEDE 8915, Universidad de los Andes, Facultad de Economía, CEDE.
    13. Heckman, James J. & Masterov, Dimitriy V., 2004. "Skill Policies for Scotland," IZA Discussion Papers 1444, Institute of Labor Economics (IZA).
    14. Giorgio Brunello & Áron Gereben & Désirée Rückert & Christoph Weiss & Patricia Wruuck, 2022. "Do investments in human and physical capital respond differently to financing constraints?," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 158(1), pages 1-14, December.
    15. Neha Sharma, 2018. "Role of Corporate Communication in Boomerang," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 4, ejes_v4_i.
    16. Wolbers, M.H.J., 2001. "Learning and working: double statuses in youth transitions within the European Union," ROA Research Memorandum 6E, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    17. Richard Blundell & Lorraine Dearden & Costas Meghir & Barbara Sianesi, 1999. "Human capital investment: the returns from education and training to the individual, the firm and the economy," Fiscal Studies, Institute for Fiscal Studies, vol. 20(1), pages 1-23, March.
    18. Perli, Roberto & Sakellaris, Plutarchos, 1998. "Human capital formation and business cycle persistence," Journal of Monetary Economics, Elsevier, vol. 42(1), pages 67-92, June.

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