Credit constraints and investment in human capital: training evidence from transition economies

Alexander Popov

No 1606, Working Paper Series from European Central Bank

Abstract: Using a unique survey database of 8265 firms from 25 transition economies, I find that lack of access to finance in general, and to bank credit in particular, is associated with significantly lower investment in on-the-job training. This effect is stronger in education-intensive industries and in industries facing good global growth opportunities. To address endogeneity issues, I use the structure of local credit markets as an instrument for credit constraints at the firm-level. In addition, in panel estimates, I control for the presence of unobserved firm-level heterogeneity, as well as for changes in macroeconomic conditions. JEL Classification: G10, J21, J24, M53

Keywords: credit constraints; human capital; on-the-job training (search for similar items in EconPapers)
Date: 2013-11
Note: 861282
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Journal Article: Credit constraints and investment in human capital: Training evidence from transition economies (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20131606

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