Market imperfections and firm-sponsored training

Matteo Picchio and Jan C. van Ours

Labour Economics, 2011, vol. 18, issue 5, 712-722

Abstract: Using worker and firm data from Dutch manufacturing, our paper investigates how product market competition and labor market imperfections affect firm-sponsored training. We find that product market competition does not affect the firms' training expenditures. Increasing competition, for instance due to increased international integration and globalization, is not a threat to investments in on-the-job training. Instead, labor market imperfections influence firm-sponsored training. An increase in labor market flexibility significantly reduces the incentives of firms to invest in training. The magnitude of this effect is nevertheless small.

Keywords: Firm-sponsored; training; Labor; market; flexibility; Product; market; competition; Human; capital; Workforce (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (31)

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Related works:
Working Paper: Market imperfections and firm-sponsored training (2010)
Working Paper: Market imperfections and firm-sponsored training (2010)
Working Paper: Market Imperfections and Firm-Sponsored Training (2010)
Working Paper: Market Imperfections and Firm-Sponsored Training (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:18:y:2011:i:5:p:712-722

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