The Impact of Job-Specific Training on Short-Term Worker Performance: Evidence from a Field Experiment

Elizabeth Lyons

Natural Field Experiments from The Field Experiments Website

Abstract: Remote and short-term work arrangements are increasingly common despite the limited incentives they provide for acquiring firm-specific knowledge. This paper examines the importance and cost-effectiveness of firm-specific training for remote contract workers using evidence from a field experiment conducted in an East African insurance firm that offers two-month employment contracts for its salespeople. Findings show that firm-specific training significantly increases firm revenue, but that this effect is concentrated among higher ability workers. Training has no impact on worker retention, and offering workers financial or competitive input-based incentives has no impact on these findings, or on observed worker investment in firm-specific training. These results demonstrate that high ability temporary workers may be willing to invest in firm-specific human capital without additional incentives, and that firm performance is significantly improved as a result. Implications for temporary work contracts are discussed.

Date: 2016
New Economics Papers: this item is included in nep-afr, nep-exp and nep-hrm
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Persistent link: https://EconPapers.repec.org/RePEc:feb:natura:00572

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