Productivity Gains from the Implementation of Employee Training Programs

This study uses data on the personnel policies and economic characteristics of businesses in the manufacturing sector to measure the impact of formal training programs on 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 that 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.