Determinants and effects of intra-firm trainings: evidence from a large German company

Using personnel records from a multinational company, we investigate determinants and effects of intra-firm training participation. The main question we address is who gets trained in the firm and whether company training sustainably increases the performance of employees. Besides analyzing the effects on wages, we are also able to use individual bonus payments as a productivity measure. We further observe the internal labor market of this company and are therefore able to analyze who receives intra-firm training. With this paper we contribute to the training literature with an insider econometric approach in order to gain further insights on the determinants and effects of intra-firm trainings. © 2013, Springer-Verlag Berlin Heidelberg.