Market imperfections and firm-sponsored training

M. Picchio, J.C. van Ours

Research output: Contribution to journalArticleScientificpeer-review

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.
Original languageEnglish
Pages (from-to)712-722
JournalLabour Economics
Volume18
Issue number5
DOIs
Publication statusPublished - 2011

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Market imperfections
Product market competition
Labor market imperfections
Manufacturing
International integration
Threat
On-the-job training
Workers
Incentives
Labour market flexibility
Expenditure
Globalization

Cite this

Picchio, M. ; van Ours, J.C. / Market imperfections and firm-sponsored training. In: Labour Economics. 2011 ; Vol. 18, No. 5. pp. 712-722.
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Market imperfections and firm-sponsored training. / Picchio, M.; van Ours, J.C.

In: Labour Economics, Vol. 18, No. 5, 2011, p. 712-722.

Research output: Contribution to journalArticleScientificpeer-review

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