Not All Management Training is Created Equal: Evidence from the Training Within Industry Program

95 Pages Posted: 30 Sep 2019 Last revised: 11 Nov 2019

See all articles by Nicola Bianchi

Nicola Bianchi

Northwestern University - Kellogg School of Management; National Bureau of Economic Research (NBER)

Michela Giorcelli

University of California - Los Angeles; National Bureau of Economic Research (NBER)

Date Written: November 10, 2019

Abstract

This paper examines the effects of management practices on firm performance, using evidence from the Training Within Industry (TWI) program. The TWI plan was a business training program implemented by the U.S. government between 1940 and 1945 to provide management training to firms involved in war production. Using newly collected panel data on all 11,575 U.S. firms that applied to the program, we estimate its causal effects by exploiting quasi-random variation in the allocation of instructors to firms. We find that receiving any TWI training had a positive effect on firm performance. Training in human resources management had the largest impact and was complementary to other management practices. Finally, we document substantial heterogeneity in the effects of the program depending on whether top or middle managers were trained.

Keywords: management training, productivity, human capital, world war II

JEL Classification: L2, M2, N34, N64, O32, O33

Suggested Citation

Bianchi, Nicola and Giorcelli, Michela, Not All Management Training is Created Equal: Evidence from the Training Within Industry Program (November 10, 2019). Available at SSRN: https://ssrn.com/abstract=3457878 or http://dx.doi.org/10.2139/ssrn.3457878

Nicola Bianchi (Contact Author)

Northwestern University - Kellogg School of Management ( email )

2211 Campus Drive
Evanston, IL 60208
United States

HOME PAGE: http://www.bianchinicola.com

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Michela Giorcelli

University of California - Los Angeles ( email )

9262 Bunche Hall
315 Portola Plaza
Los Angeles, CA CA 90024
United States
650-630-9648 (Phone)

HOME PAGE: http://www.giorcellimichela.com

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

HOME PAGE: http://www.giorcellimichela.com

Register to save articles to
your library

Register

Paper statistics

Downloads
21
Abstract Views
236
PlumX Metrics