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|Title:||Market imperfections and firm-sponsored training |
van Ours, Jan C.
|Issue Date:||2010 |
|Series/Report no.:||Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 4988|
|Abstract:||Recent human capital theories predict that labor market frictions and product market competition influence firm-sponsored training. Using matched worker-firm data from Dutch manufacturing, our paper empirically assesses the validity of these predictions. We find that a decrease in labor market frictions significantly reduces firms' training expenditures. Instead, product market competition does not have an effect on firm-sponsored training. We conclude that increasing competition through international integration and globalization does not pose a threat to investments in on-the-job training. An increase in labor market flexibility may reduce incentives of firms to invest in training, but the magnitude of this effect is small.|
labor market frictions
product market competition
matched worker-firm data
|Document Type:||Working Paper|
|Appears in Collections:||IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)|
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