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'.
Georgiadis, A., & Pitelis, C. N. (2016). 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. British Journal of Industrial Relations, 54(2), 409-421. https://doi.org/10.1111/bjir.12094