Effects Of Training On Employee Suggestions And Promotions In An Internal Labor Market
The authors 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 them to address issues such as unobserved heterogeneity and the length of potential training effects. The 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.