Individual Barriers to Firm Training Participation: Evidence from a Large-Scale Experiment among Employees

Last registered on April 16, 2024

Pre-Trial

Trial Information

General Information

Title
Individual Barriers to Firm Training Participation: Evidence from a Large-Scale Experiment among Employees
RCT ID
AEARCTR-0013319
Initial registration date
April 08, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
April 16, 2024, 1:08 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Region

Primary Investigator

Affiliation
Technical University of Munich

Other Primary Investigator(s)

PI Affiliation
Technical University of Munich
PI Affiliation
ifo Institute

Additional Trial Information

Status
In development
Start date
2024-04-15
End date
2024-05-31
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
New technologies have a major impact on the labor market and change the demand for jobs and skills. In this context, firm training emerges as a pivotal strategy for skill adaptation. Nevertheless, participation in firm training is relatively low, especially among low-skilled workers who could benefit the most from up- and reskilling. Existing literature identifies two primary barriers: (1) employees’ uncertainty about the returns to firm training, and (2) employees’ beliefs that they are no longer used to learning. We conduct an information provision treatment with the aim of mitigating these barriers. Our main outcome of interest is employees’ likelihood to participate in firm training and we assess the impact of our information provision treatment on this likelihood.
External Link(s)

Registration Citation

Citation
Brosch, Hanna, Philipp Lergetporer and Florian Schoner. 2024. "Individual Barriers to Firm Training Participation: Evidence from a Large-Scale Experiment among Employees." AEA RCT Registry. April 16. https://doi.org/10.1257/rct.13319-1.0
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Experimental Details

Interventions

Intervention(s)
We randomly assign all respondents to a control group or a treatment group. The treatment group receives general information about the positive returns to firm training and a short text highlighting that acquiring new skills is possible at any age.

Respondents in the control group receive no information.
Intervention (Hidden)
Participants will answer our survey questions via an online platform.
Participants will participate in the experiment via an online platform.
Participants will be randomly assigned to one of two experimental groups (control group and treatment group).

For the treatment group, the experiment is structured as follows:
Stage 1 [Belief elicitation]:
“How much do you agree with the following statements?
- Participation in firm training increases my salary in the long term.
- Participation in firm training improves my career opportunities in the long term.
- I can improve in my professional tasks through practice.
- The skills you bring with you are more important than any effort.
- I would find it easy to learn new things as part of further training.
- The fact that I am no longer used to learning prevents me from taking part in further training.”

Participants indicate their agreement on a 5-point Likert scale (I strongly agree, I tend to agree, neither, I tend to disagree, I strongly disagree) for each statement separately.

We construct two indices, one for beliefs about financial-returns and one for learning barriers summarizing the responses to the individual statements. Items 1 and 2 are intended to measure beliefs about financial-returns, items 3-6 beliefs about learning barriers.

Stage 2 [Information provision]:
Treatment group:
“Participation in further training ensures that employees' skills keep pace with technological change. Studies of the German labor market have shown that firm training protects against job loss and often leads to higher wages in the long term.

After a long break from learning, learning new skills through firm training can seem challenging. However, numerous studies show that you can improve or relearn your skills through regular practice well into old age.”

Stage 3 [Outcome questions]: After the information provision, members of the treatment and control group will be asked about their likelihood of participating in firm training 1) without any costs and 2) when they have to forgo part of their wage (see outcome questions below):

“Imagine your employer offers you the opportunity to take part in 80 hours of firm training (equivalent to about 2 weeks full-time) that takes place during working hours.
How likely is it that you will accept the offer...
... if the costs of firm training are covered fully by the employer: ... %
... if you have to bear part of the costs of firm training amounting to 20% of your current net monthly salary yourself: ... %”

For the control group, Stage 1 [Belief elicitation] and Stage 3 [Outcome question] will be identical, but they will not receive any information (Stage 2).
Intervention Start Date
2024-04-15
Intervention End Date
2024-05-31

Primary Outcomes

Primary Outcomes (end points)
Our primary outcome is respondents’ likelihood of participation in firm training.
Primary Outcomes (explanation)
The outcome question on the likelihood of participation in firm training:
“How likely is it that you will accept the offer...
... if the costs of firm training are covered fully by the employer: ... %
... if you have to bear part of the costs of firm training amounting to 20% of your current net monthly salary yourself: ... %”

To answer this question, respondents can indicate a number from 0 to 100.
We construct a summary index out of both outcomes.

Secondary Outcomes

Secondary Outcomes (end points)
We further give respondents the possibility to acquire information about firm training opportunities. We will use this information acquisition as an additional outcome measuring planned training participation.

We further plan to investigate treatment effect heterogeneity with respect to
(i) respondents’ prior beliefs
(ii) respondents’ own educational attainment/skill level
(iii) respondents’ age

Additionally, we will perform an exploratory analysis on further heterogeneities by respondents’ type of job (e.g., job characteristics, exposure to structural change), prior firm training participation, and further respondent characteristics.
Secondary Outcomes (explanation)
The question on whether respondents would like to receive further information about firm training is worded as follows:
“Are you interested in firm training?
The Federal Employment Agency offers an online portal where you can search for the right firm training for you in order to make specific suggestions to your employer. The courses offered there are often co-financed by the employer.
Would you like to receive a link to the online portal at the end of the survey? Yes/No”

Experimental Design

Experimental Design
We conduct the experiment in a sample of 3,000 employees in Germany aged 25 to 55 years. The survey is conducted in cooperation with Talk Online Panel. The recruitment and polling is managed by Talk Online Panel, who collect the data via an online platform. That is, our participants answer the survey questions autonomously on their own digital devices. Randomization is carried out by Qualtrics, the survey provider at the individual level, using a computer.
Experimental Design Details
Our experiment is structured as follows:
Respondents will be randomly assigned (between subject) to treatment (probability = 1/2) or the control group (probability = 1/2).

Sequence of events in the treatment group:
1. Belief elicitation
2. Information provision
3. Outcome

Sequence of events in the control group is the same apart from step 2.
Randomization Method
Randomization is carried out by the randomizer of the survey platform, using a computer.
Randomization Unit
At the individual level
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
3,000
Sample size: planned number of observations
3,000, 1/2 (approximately 1,500) will be assigned to each of the two experimental groups.
Sample size (or number of clusters) by treatment arms
1,500 control group, 1,500 treatment group
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
None
IRB

Institutional Review Boards (IRBs)

IRB Name
German Association for Experimental Economic Research e.V.
IRB Approval Date
2024-04-03
IRB Approval Number
7Wpkowau

Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials