The Impact of Employees' and Managers' Training on the Performance of Small- and Medium-Sized Enterprises: Evidence from a Randomized Natural Experiment in the UK Service Sector

Andreas Georgiadis and Christos Pitelis

British Journal of Industrial Relations, 2016, vol. 54, issue 2, 409-421

Abstract: We investigate the relationship between employees' and managers' training and firm performance using a policy intervention that randomly assigned training support to small- and medium-sized enterprises in the UK accommodation and food service sector. Because the number of firms self-selected into training exceeded available places, training was randomly assigned to some firms, resulting in a randomized natural experimental design that allowed us to identify the average effect of training on treated firms. Our empirical results suggest that employees' training had a stronger positive impact on firms' labour productivity and profitability than that of managers'.

Date: 2016
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