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52 Indus. & Lab. Rel. Rev. 64 (1998-1999)
Beyond the Incidence of Employer-Provided Training

handle is hein.journals/ialrr52 and id is 72 raw text is: BEYOND THE INCIDENCE OF EMPLOYER-PROVIDED TRAINING LISA M. LYNCH and SANDRA E. BLACK* Using data from a 1994 survey of U.S. establishments, the authors investigate how the incidence, content, and extent of employer-pro- vided training were linked to workplace practices and characteristics, physical capital investments, and workers' education. Formal training programs were positively associated with establishment size, the pres- ence of high-performance work systems (such as Total Quality Manage- ment), capital-intensive production, and workers' education level. Gen- eral 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-perfor- mance 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 physi- cal capital and education. ncreasing international competition, new technologies such as computers, and changing work organization have spurred discussion of the ways in which workers acquire new skills for a rapidly evolving labor market. Historically, the United States has relied on a system of formal school- based learning combined with informal learning on-the-job to supply necessary workplace skills. Although this system ap- peared to meet the skill needs of most *Lisa Lynch is the William L. Clayton Professor of International Economic Affairs at the Fletcher School of Law and Diplomacy, Tufts University, and Sandra Black is an Economist at the Federal Reserve Bank of New York. workers and employers in the 1960s and 1970s, there is a growing concern that it is no longer adequate. In addition, as some The work reported herein was supported under the Education Research and Development Center program, agreement number RI 17Q0001 1-91, CFDA 84.117Q, as administered by the Office of Educa- tional Research and Improvement, U.S. Department of Education. This funding was administered through the National Center on the Educational Quality of the Workforce (EQW), University of Pennsylvania. The authors thank Peter Cappelli, Joyce Cooper, Barbara Gelhard, Arnold Reznek, Steven Rudolph, Fabio Schiantarelli, Daniel Shapiro, and Robert Zemsky for their very helpful suggestions and assis- tance on this project. The findings and opinions expressed in this report do not reflect the position or policies of OERJ, the U.S. Department of Education, the Bureau of the Census, the Federal Reserve Bank of New York, or the Federal Reserve System. Industrial and Labor Relations Review, Vol. 52, No. 1 (October 1998). © by Cornell University. 0019-7939/98/5201 $01.00

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