The presence of a learning curve has been documented in many industries. Yet little is known about why learning occurs, whether it persists, and how to transfer it. This award empirically investigates the persistence of learning within organizations and the transfer of learning across organizations. The role of turnover in learning and its persistence are also examined. The analyses are based on records data collected from one firm in the aerospace industry producing an advanced jet and from three plants of the same firm in the automotive industry producing a light truck. The principal investigator will estimate production functions with variables included to assess the importance of persistence, transfer and labor turnover in affecting the efficiency of the production process. In addition to testing whether learning persists, whether it transfers, and whether turnover is related to the rate of learning, the research aims to develop a theoretical model of learning in organizations that integrates and explains the empirical findings. The research will advance scientific knowledge about why learning occurs in organizations and whether it persists and transfers. This information will enable organizations to improve their productivity and hence, compete more effectively. The information will also lead to improved forecasting.
