Continuing Vocational Training Forms and Establishment Productivity in Germany

Abstract This paper provides evidence of the productivity effects of different continuing vocational training forms in Germany. Using the waves 1997-2001 of the IAB establishment panel, it is found that formal external courses have the largest positive impact on productivity. Formal internal courses and quality circles have a smaller positive impact. Self-induced learning, participation at seminars and talks and job rotation do not enhance productivity while training on the job has a negative productivity impact. Establishments with an inefficient production structure decide to offer training in order to boost productivity. This paper also shows that taking into account selectivity of the training decision, unobserved time-invariant heterogeneity, human resource practices, as well as establishment and employee characteristics has an important impact on the measurement results.