Determinants of Employer-Provided Training

Posted: 30 Nov 1998

See all articles by Lisa M. Lynch

Lisa M. Lynch

Tufts University - The Fletcher School of Law and Diplomacy; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Sandra E. Black

Columbia University; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics; Norwegian School of Economics (NHH) - Department of Economics

Abstract

Using data from a 1994 survey of U.S. establishments, the authors investigate how the incidence, content, and extent of employer-provided training were linked to workplace practices and characteristics, physical capital investments, and workers' education. Formal training programs were positively associated with establishment size, the presence of high-performance work systems (such as Total Quality Management), capital-intensive production, and workers' education level. "General" types of training programs in computing and basic education were most likely in establishments that were large, were part of a multi-establishment firm, had low employee turnover, or had high-performance work systems. The percentage of workers given training was highest in establishments that had made large investments in physical capital or had adopted new forms of work organization, especially in the manufacturing sector. These results suggest that employer-provided training complements rather than substitutes for investments in physical capital and education.

JEL Classification: J24

Suggested Citation

Lynch, Lisa M. and Black, Sandra E., Determinants of Employer-Provided Training. Available at SSRN: https://ssrn.com/abstract=100732

Lisa M. Lynch (Contact Author)

Tufts University - The Fletcher School of Law and Diplomacy ( email )

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National Bureau of Economic Research (NBER)

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IZA Institute of Labor Economics

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Sandra E. Black

Columbia University ( email )

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5125745788 (Phone)

National Bureau of Economic Research (NBER) ( email )

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Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Norwegian School of Economics (NHH) - Department of Economics

Helleveien 30
N-5035 Bergen
Norway

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