Organization adjustments, job training and productivity: Evidence from Japanese automobile makers

This paper considers the demand for job training and its interaction with organization adjustments through rotation within a team and relocation across teams in response to demand and supply shocks. We employ original survey data from two Japanese automobile makers. The analysis includes estimations of determinants of on-the-job training, and of how much such training contributes to improvements in individual productivity. We also investigate effects of the characteristics of workplace practices, including the behavior of foremen as well as assemblers, on the incentives for individual assemblers to seek job training and productivity improvements.

► We consider the demand for job training and its interaction with rotation within a team and relocation across teams. ► We employ original assembler survey data from two Japanese automobile makers. ► OJT is provided to assemblers when they are assigned different operations through organization adjustment. ► Organization adjustments are undertaken in response to productivity shocks. ► Assemblers who receive OJT perceive their gains in productivity.