Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/216379
Authors: 
Brunello, Giorgio
Gereben, Áron
Weiss, Christoph T.
Wruuck, Patricia
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers 13067
Abstract: 
Using a representative sample of European firms, we study whether and to what extent financing constraints affect employers' decision to invest in employee training. We combine survey data on investment activities with administrative data on financial statements to develop an index of financing constraints. We estimate that a 10 percent increase in this index reduces investment in training as a share of fixed assets by 2.9 to 4.5 percent and investment in training per employee by 1.8 to 2.5 percent. We document that lower investment in training reduces productivity, and show that firms facing tighter financing constraints cut back the investment in training and tangible assets less than the investment in R&D and software and data.
Subjects: 
training
financing constraints
Europe
JEL: 
J24
Document Type: 
Working Paper

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