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A justification for job training programs is that they improve worke

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A justification for job training programs is that they
improve worker productivity. Suppose that
you are asked to evaluate whether more job training
makes workers more productive. However,
rather than having data on individual workers, you have
access to data on manufacturing firms in
Ohio. In particular, for each firm, you have information on
hours of job training per worker
(training) and number of nondefective items produced per
worker hour (output).
(i) Carefully state the ceteris paribus experiment
underlying this policy question.
(ii) Does it seem likely that a firm\'s decision to train its
workers will be independent of worker
characteristics?
(iii) Name a factor other than worker characteristics that
can affect worker productivity.
(iv) If you find a positive correlation between output and
training, would you have convincingly
established that job training makes workers more
productive?
Solution
(i) Ceteris Paribus is a clause which means \'Other
things/factors being constant\'.
In the given situation, if we say that job training would
increase the worker\'s productivity we are assuming that

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certain factors (such as education level of worker, hours of
work, supervisor\'s attitude or leadership skills, type of
work etc.), that could affect the relationship between the
job training and productivity, would remain constant and
would not change.
Underlying the policy question, the ceteris paribus
experiment could be the following:
Select several kinds of work that comes under
manufacturing, at different geographical location, and also
under different supervisors having different leadership
skills. Apply different educationals backgrounds workers
under such supervisors at different locations at different
kinds of work with equal working hours.
It might helps to determine the causal relationship betwen
job training and productivity while experimenting ceteris
Paribus.
(ii) A firm\'s decision to train its workers will not be
independent of its worker characteristics. As different
workers have different features, skills, capacity, learning
rate, educational background, and different sets of
personal skills that would be extrenegous variables
affecting the causal relationship.
(iii) An important factor other than worker characteristics
that can affect worker productivity is kind of work.
(iv) If a positive correlation between output and training is

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A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate whether more job training makes workers more productive. However, rather than having data on individual workers, you have access to data on manufacturing firms in Ohio. In particular, for each firm, you have information on hours of job training per worker (training) and number of nondefective items produced per worker hour (output). (i) Carefully state the ceteris paribus experiment underlying this policy question. (ii) Does it seem likely that a firm \'s decision to train its workers will be independent of worker characteristics? (iii) Name a factor other than worker characteristics that can affect worker productivity. (iv) If you find a positive correlation between output and training, would you have convincingly established that job training makes workers more pro ...
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