Using German establishment data, this article examines the relationship between product market competition and the extent of employer provided training. We demonstrate that high product market competition is associated with increased training except when the competition is so severe as to threaten liquidation to a firm. We take this as evidence of an inverted U-shaped relationship. We also make clear that while this relationship is very evident for the service sector, it is far less evident for manufacturing where we largely confirm earlier results of no relationship. © 2019 The Author(s) 2019. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved.
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