Working Paper: NBER ID: w3026
Authors: Ann P. Bartel
Abstract: Although economic models of training decisions are framed in terms of a company's calculation of the costs and benefits of such training, empirical work has never been able to test this model directly on company behavior. This paper utilizes a unique database to analyze the determinants of the variation in formal training across businesses and the impact of such training on labor productivity. Major findings are that large businesses, those introducing new technology end those who rely on internal promotions to fill vacancies are more likely to have formal training programs. Formal training is found to have a positive effect on labor productivity.
Keywords: employee training; labor productivity; human resources; firm characteristics
JEL Codes: J24; M53
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Firm Size (L25) | Formal Training Programs (M53) |
| Technological Change (O33) | Formal Training Programs (M53) |
| Formal Training Programs (M53) | Labor Productivity (O49) |