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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/30739
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| Title: | | Barriers to entry, deregulation and workplace training: A theoretical model with evidence from Europe  |
| Authors: | | Bassanini, Andrea Brunello, Giorgio |
| Issue Date: | | 2010 |
| Series/Report no.: | | CESifo working paper 2945 |
| Abstract: | | We study the impact of barriers to entry on workplace training. Our theoretical model indicates that there are two contrasting effects of deregulation on training. With a given number of firms, deregulation reduces the size of rents per unit of output that firms can reap by training their employees. Yet, the number of firms increases, thereby raising output and profit gains from training and improving investment incentives. The latter effect always prevails. Our empirical analysis, based on repeated cross-section data from 15 European countries and 12 industries, confirms the predictions of the model and shows that deregulation increases training incidence. |
| Subjects: | | training product market competition Europe |
| JEL: | | J24 L11 O43 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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