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TACKLING YOUTH UNEMPLOYMENT
We design a labor market experiment to compare demand-and supply-side policies to tackle youth unemployment, a key issue in low-income countries. The experiment tracks 1700 workers and 1500 firms over four years to compare the effect of offering workers either vocational training (VT) or firm-provided training (FT) for six months in a common setting where youth unemployment is above 60%. Relative to control workers, we find that, averaged over three post-intervention years, FT and VT workers: (i) enjoy large and similar upticks in sector-specific skills, (ii) significantly improve their employment rates, and (iii) experience marked improvements in an index of labor market outcomes. These averages, however, mask differences in dynamics: FT gains materialize quickly but fade over time, while VT gains emerge slowly but are longlasting, leading VT worker employment and earning profiles to rise above those of FT workers. Estimating a job ladder model of worker search reveals the key reason for this: VT workers receive significantly higher rates of job offers when unemployed, thus hastening their movement back into work. This likely stems from the fact that the skills of VT workers are certified and therefore can be demonstrated to potential employers. Tackling youth unemployment by skilling youth using vocational training pre-labor market entry therefore appears to be more effective than incentivizing firms through wage subsidies to hire and train young labor market entrants.
Journal Article
Building a Healthy MQ-1/9 RPA Pilot Community : Designing a Career Field Planning Tool
\"Remotely piloted aircraft (RPA) and the personnel that operate them are well understood to be crucial to mission success in today's Air Force, and demand for skilled pilots continues to grow rapidly. However, recent studies suggest that personnel in the RPA pilot career field are dissatisfied with aspects of the job and are experiencing stress as a result. Although a variety of workplace factors lead to the stress and dissatisfaction, a large portion of them relate to issues associated with career field planning. These career field planning issues exist, in part, because of the newness and rapid growth of the RPA enterprise. The 18X RPA pilot force (those whose first and only rated job is as an RPA pilot) is only six years old, and plans for the future of the career field are still evolving. Moreover, as the rapid growth in demand for 18X pilots has outpaced the Air Force's ability to produce them, the Air Force is now struggling to train and retain enough personnel to meet the demand. Recognizing that a more thoughtful and stable plan for managing the career field is needed to ensure the future health of the force, Air Force leadership asked RAND to assist in building a long-term career field planning model that addresses those force health issues and the timeline required to build a healthy, sustainable career field. This report documents RAND's efforts to develop that model; explains its main features, underlying content, and data inputs; and describes its key technical aspects.\"--Publisher's description.
Book
Human capital and unemployment dynamics
Why do more educated workers experience lower unemployment rates and lower employment volatility? Empirically, these workers have similar job finding rates but much lower and less volatile separation rates than their less educated peers. We argue that on-the-job training, being complementary to formal education, is the reason for this pattern. Using a search and matching model with endogenous separations, we show that investments in match-specific human capital reduce incentives to separate but leave the job finding rate essentially unaffected. The model generates unemployment dynamics quantitatively consistent with the data. Finally, we provide novel empirical evidence supporting the mechanism studied in the article.
Journal Article
Effectiveness of VR Head Mounted Displays in Professional Training: A Systematic Review
Over the past decade, virtual reality (VR) has re-emerged as a popular technology trend. This is mainly due to the recent investments from technology companies that are improving VR systems while increasing consumer access and interest. Amongst many applications of VR, one area that is particularly promising is for pedagogy. The immersive, experiential learning offered by VR provides new training and learning opportunities driven by the latest versions of affordable, highly immersive and easy to use head mounted display (HMD) systems. VR has been tested as a tool for training across diverse settings with varying levels of success in the past. However, there is a lack of recent review studies that investigates the effectiveness, advantages, limitations, and feasibility of using VR HMDs in training. This review aims to investigate the extent to which VR applications are useful in training, specifically for professional skill and safety training contexts. In this paper, we present the results from a systematic review of the effectiveness of VR-based simulation training from the past 30 years. As a secondary aim, the methodological trends of application and practical challenges of implementing VR in training curriculum were also assessed. The results suggest that there is generally high acceptance amongst trainees for VR-based training regardless of the technology limitations, usability challenges and cybersickness. There is evidence that VR is useful for training cognitive skills, such as spatial memory, learning and remembering procedures and psychomotor skills. VR is also found to be a good alternative where on the job training is either impossible or unsafe to implement. However, many training effectiveness studies reviewed lack experimental robustness due to limited study participants and questionable assessment methods. These results map out the current known strengths and weaknesses of VR HMDs and provide insight into required future research areas as the new era of VR HMD’s evolve.
Journal Article
The Science of Training and Development in Organizations: What Matters in Practice
Organizations in the United States alone spend billions on training each year. These training and development activities allow organizations to adapt, compete, excel, innovate, produce, be safe, improve service, and reach goals. Training has successfully been used to reduce errors in such high-risk settings as emergency rooms, aviation, and the military. However, training is also important in more conventional organizations. These organizations understand that training helps them to remain competitive by continually educating their workforce. They understand that investing in their employees yields greater results. However, training is not as intuitive as it may seem. There is a science of training that shows that there is a right way and a wrong way to design, deliver, and implement a training program. The research on training clearly shows two things: (a) training works, and (b) the way training is designed, delivered, and implemented matters. This article aims to explain why training is important and how to use training appropriately. Using the training literature as a guide, we explain what training is, why it is important, and provide recommendations for implementing a training program in an organization. In particular, we argue that training is a systematic process, and we explain what matters before, during, and after training. Steps to take at each of these three time periods are listed and described and are summarized in a checklist for ease of use. We conclude with a discussion of implications for both leaders and policymakers and an exploration of issues that may come up when deciding to implement a training program. Furthermore, we include key questions that executives and policymakers should ask about the design, delivery, or implementation of a training program. Finally, we consider future research that is important in this area, including some still unanswered questions and room for development in this evolving field.
Journal Article
The impact of training on productivity and wages
This paper uses firm-level panel data of on-the-job training to estimate its impact on productivity and wages. To this end, we apply and extend the control function approach for estimating production functions, which allows us to correct for the endogeneity of input factors and training. We find that the productivity premium of a trained worker is substantially higher compared to the wage premium. Our results are consistent with recent theories that explain work-related training by imperfect competition in the labor market.
Journal Article
Bribery, on-the-job training, and firm performance
The previous literature has extensively examined the effect of firm-level bribery on firm performance but not through on-the-job training. This paper investigates the impact of paying bribes on the firm’s investment decisions in on-the-job training and offers mediating implications of corruption on firm performance. We empirically examine the relationship between bribery and on-the-job training using firm-level data from the World Bank Enterprise Surveys consisting of a sample of 94 developing countries with 20,601 firms. The findings show that bribery and on-the-job training intensity affects real annual sales growth rates negatively and positively, respectively. Furthermore, firms exposed to more bribery reduce their on-the-job training intensity. The results are robust to the different classifications of the firm’s size, different subsamples, and controls for the endogeneity of the on-the-job training and bribery.Plain English SummaryCan bribery be an obstacle for the firm’s investment in on-the-job training and, therefore, its performance? When firms are exposed to higher costs due to bribery, they may be forced to shift their resources from efficient uses. For instance, training is one way of using the resources efficiently as it will increase labor productivity, and, therefore, decrease average production costs. Analyzing a large firm-level data, we find that if firms are exposed to more bribery, they tend to offer lower training to their employees, and their performance worsens. Thus, the main policy implication of this paper is that governments should provide some types of subsidies for the provision of on-the-job training. Improving firm performance through training would also improve the country’s prosperity, which in turn could eliminate corruption. Henceforth, the vicious cycle between bribery, education, and development could be broken down.
Journal Article
The concept of competence: a thematic review and discussion
Purpose
This paper follows three objectives. The paper aims to demonstrate a synoptic view of the historical evolution of competence, significant growth and changes in conversation. The second objective is to investigate the meaning and definitional usage of competence and competency. The third objective is to present a synoptic view of different dimensions of competence.
Design/methodology/approach
This paper reviews the selected literature spanning from 1959 to date from various databases using the following keywords: competence, competency, employee competence, employee competency, competency management and competency-based management. A total of 170 studies were selected in the first wave. In the second wave, a detailed assessment was made, as suggested by Tranfield Denyer and Smart, to ascertain the relevance of the articles. In this way, only 63 studies were selected for the review. This study also considers other relevant literature.
Findings
The historical evolution demonstrates that competence scholarship has focused on use of the concept in different fields and contexts, theoretical frameworks for competence development and strategic relevance of competence-based (demand-based) human resource management. Results also suggest that the term competency and competence are interchangeably usable. Finally, the review summarizes a total of 16 dimensions of competence, studied in various contexts and classifies them into hard and soft competence and further dividing them into knowledge, skill and self-actualization-related competence.
Research limitations/implications
This paper discusses various research implications for human resource development scholars and professionals.
Originality/value
This paper is a unique attempt to review the literature on three themes of employee competence.
Journal Article
Organizational learning through training effectiveness: evidence from the hospitality industry in Vietnam
Purpose
To understand the unique context forming organizational learning, the current study aims to investigate the antecedents of training and development (TD) practices as an indicator of effective organizational learning from the Vietnam hospitality sector, which has not been studied rigorously.
Design/methodology/approach
This study adopts a mixed method of quantitative and qualitative data analysis, including a path analysis partial least squares structural equation modeling (PLS-SEM) based on a sample size of 354 responses and a semi-structured interview of 32 participants to test various paths predicting training effectiveness while exploring contextual differences in the Vietnam hospitality sector.
Findings
The results show that among the variables investigated, extrinsic motivation, team support and job quality were found to be significant to TD, while intrinsic motivation was found to have no significant predictive power. To explore the reasons behind these findings, the interviews indicate that the motivations of employees in the hospitality sector, most of whom are young and have a limited length of service, are highly rooted in the organization’s cultural context.
Originality/value
This study contributes to understanding the complex context of organizational learning through an investigation of an emerging economy from Southeast Asia by adding new insights into the training and motivational theories. It has practical implications for practitioners in the hospitality sector to develop more effective learning organizations during the uncertain period of this unprecedented pandemic.
Journal Article