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Market imperfections and firm-sponsored training

Matteo Picchio () and Jan van Ours ()

No 2010026, Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: Recent human capital theories predict that labor market frictions and product market competition influence firm-sponsored training. Using matched worker-firm data from Dutch manufacturing, our paper empirically assesses the validity of these predictions. We find that a decrease in labor market frictions significantly reduces firms’ training expenditures. Instead, product market competition does not have an effect on firm-sponsored training. We conclude that increasing competition through international integration and globalization does not pose a threat to investments in on-the-job training. An increase in labor market flexibility may reduce incentives of firms to invest in training, but the magnitude of this effect is small.

Keywords: firm-sponsored training; labor market frictions; product market competition; matched worker-firm data (search for similar items in EconPapers)
JEL-codes: D43 J24 J42 L22 M53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-hrm, nep-lab and nep-mic
Date: 2010-08-16
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http://sites.uclouvain.be/econ/DP/IRES/2010026.pdf (application/pdf)

Related works:
Journal Article: Market imperfections and firm-sponsored training (2011) Downloads
Working Paper: Market imperfections and firm-sponsored training (2010) Downloads
Working Paper: Market Imperfections and Firm-Sponsored Training (2010) Downloads
Working Paper: Market Imperfections and Firm-Sponsored Training (2010) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2010026

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