Training and Productivity: Evidence for US Manufacturing Industries

Facundo Sepulveda
2005 Social Science Research Network  
We use an industry level dataset to examine the role of formal training programs in productivity growth. Because there is disagreement over the technology that converts training into new human capital, we test a number of hypotheses regarding this technology: We find evidence for positive and decreasing effects of on-the-job training in human capital accumulation, and therefore productivity. In the cross section, training is more effective in industries with higher human capital. These effects
more » ... tal. These effects are quantitatively important, and increase substantially when the endogeneity of training decisions is addressed. Off-the-job training on the other hand has no effects on industrial productivity.
doi:10.2139/ssrn.830406 fatcat:l3n6veyzhnd6pbrdv777pckutu