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Effects of Training on Employee Suggestions and Promotions in an Internal Labor Market

Author

Listed:
  • Christian Pfeifer

    (Institute of Economics, Leuphana University Lueneburg, Germany)

  • Simon Janssen

    (University Zurich, Institute for Strategy and Business Economics, Switzerland)

  • Philip Yang

    (Leibniz University Hannover, Institute of Labor Economics, Germany)

  • Uschi Backes-Gellner

    (University Zurich, Institute for Strategy and Business Economics, Switzerland)

Abstract
We evaluate the effects of employer-provided formal training on employee suggestions for productivity improvements and on promotions among male blue-collar workers. More than twenty years of personnel data of four entry cohorts in a German company allow us to address issues such as unobserved heterogeneity and the length of potential training effects. Our main finding is that workers have larger probabilities to make suggestions and to be promoted after they have received formal training. The effect on suggestions is however only short term. Promotion probabilities are largest directly after training but also seem to be affected in the long term.

Suggested Citation

  • Christian Pfeifer & Simon Janssen & Philip Yang & Uschi Backes-Gellner, 2011. "Effects of Training on Employee Suggestions and Promotions in an Internal Labor Market," Working Paper Series in Economics 202, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:202
    as

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    References listed on IDEAS

    as
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    Cited by:

    1. Kristina Sisyuk, 2018. "Training, knowledge, competence, performance: what is the relationship?," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 4(6), pages 297-312.
    2. Katrin Breuer & Patrick Kampkoetter, 2012. "Do Employees Reciprocate to Intra-Firm Trainings? An Analysis of Absenteeism and Turnover Rates," Cologne Graduate School Working Paper Series 03-09, Cologne Graduate School in Management, Economics and Social Sciences.
    3. Zenou, Yves & Lindquist, Matthew & Sauermann, Jan, 2015. "Network Effects on Worker Productivity," CEPR Discussion Papers 10928, C.E.P.R. Discussion Papers.
    4. Friederike von Haaren-Giebel & Malte Sandner, 2016. "Naturalisation and on-the-job training: evidence from first-generation immigrants in Germany," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-28, December.

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    More about this item

    Keywords

    Human capital; Insider econometrics; Productivity; Promotions; Training;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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