The investment in job training: why are SMEs lagging so much behind?

Rita Almeida () and Reyes Aterido

No 54967, Social Protection Discussion Papers and Notes from The World Bank

Abstract: This paper analyzes the link between firm size and the investment in job training by employers. Using a large firm level data set across 99 developing countries, we show that a strong and positive correlation in the investment in job training and firm size is a robust statistical finding both within and across countries with very different institutions and level of development. However, the findings do not support the view that this difference is mostly driven by market imperfections disproportionally affecting small and medium enterprise sector (SMEs). Rather, our evidence is supportive of SMEs having a smaller expected return from the investment in job training than larger firms. Therefore, the findings call for caution when designing pro-SME policies fostering the investment in on the job training.

Keywords: Education For All; Labor Policies; Primary Education; Microfinance; Labor Markets (search for similar items in EconPapers)
Date: 2010-05-01
New Economics Papers: this item is included in nep-ent, nep-hrm, nep-lab and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
Working Paper: The Investment in Job Training: Why Are SMEs Lagging So Much Behind? (2010)
Working Paper: Investment in job training: why are SMES lagging so much behind ? (2010)
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