The effects of firm sponsored training for low skilled workers is very positive

“Very few papers exist that focus on firm sponsored training for low skilled workers” writes Ruud Gerards in his preliminary version of his paper.

He uses “company data, which is especially rare considering the focus on low skilled workers. Second, they span up to 16 years of wage, job promotion and job performance information for 1,392 individual workers. Third, they allow to distinguish between training participation, training completion and non participation, whereas most papers distinguish ‘training’ from ‘not training’.

Using advanced econometrics “exploiting variation in training supply”, Gerards finds “significant positive effects of both training participation and completion on wages and job promotions of low skilled workers. These positive effects on wages and job promotions imply that workers add more value to the firm after training, while having improved their own (future) employability. En passant, these results show that the existence of firm sponsored general training also extends to low skilled workers, a fact under exposed in existing literature on why firms invest in general training.”

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