Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/170708 
Year of Publication: 
2017
Series/Report no.: 
GLO Discussion Paper No. 137
Publisher: 
Global Labor Organization (GLO), Maastricht
Abstract: 
We uniquely examine the relationship between firm-sponsored training and product quality competition. Using an oligopolistic model of both price and quality competition, we show that an increase in the sensitivity of demand to product quality will strengthen firms’ incentives to train their workforce. Cross section, panel and instrumental variable estimations confirm that British establishments provide more intensive training when their competitive position is more sensitive to product quality. A variety of robustness checks and changes in variable definitions leave this confirmation in place.
Subjects: 
Training
Product Quality
Demand Sensitivity
Competition
JEL: 
L13
L15
M53
Document Type: 
Working Paper

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