Article 2011

Market imperfections and firm-sponsored training

PM
Picchio, Matteo
 VO
Van Ours, Jan C.
Labour Economics
Journal · Vol. 18 · Issue 5 · pp. 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. © 2011 Elsevier B.V.

Keywords

Author Keywords

human capital Workforce Firm-sponsored training Labor market flexibility Product market competition

Index Keywords

Author Affiliations
Tilburg University, Tilburg, Noord-Brabant, Netherlands
Tilburg University, Tilburg, Noord-Brabant, Netherlands, University of Melbourne, Melbourne, VIC, Australia, , Centre for Economic Policy Research, London, London, United Kingdom, CESifo GmbH, Munich, Bayern, Germany
Funding & Acknowledgements
No funding information
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