The Impact of Product Market Competition on Employers’ Training Investments. Evidence from German Establishment Panel Data

Görlitz, Katja; Stiebale, Joel

doi:10.1007/s10645-010-9155-0

Cited by 18 publications

(28 citation statements)

References 43 publications

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“…This result is in line with the findings in Görlitz and Stiebale (2008). They studied the impact of different measures of product market competition on the firm's number of trained employees in Germany.…”

Section: The Estimation Resultssupporting

confidence: 89%

“…We used a more robust measure of product market competition and a finer measure of firms' investment in training. As in Görlitz and Stiebale (2008), we ended up however with results that does not strongly support the theoretical predictions of Gersbach and Schmutzler (2006). (a) Standard errors are adjusted by clustering at the 3-digit SIC industry level to take into account intra-industry correlation.…”

Section: The Estimation Resultsmentioning

confidence: 99%

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Market imperfections and firm-sponsored training

Picchio

Ours

2011

Labour Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. 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.JEL Classification: D43, J24, J42, L22, M53

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Section: The Estimation Resultssupporting

confidence: 89%

Section: The Estimation Resultsmentioning

confidence: 99%

Market imperfections and firm-sponsored training

Picchio

Ours

2011

Labour Economics

View full text Add to dashboard Cite

show abstract

“…The effect of product market competition is small and insignificant. This result is in line with the findings in Görlitz and Stiebale (2008). They studied the impact of different measures of product market competition on the firm's number of trained employees in Germany.…”

supporting

confidence: 89%

“…Bassanini and Brunello (2010) examine 15 European countries and 12 industries finding that an increase in product market deregulation generates a sizeable increase in training incidence. Görlitz and Stiebale (2008) find instead no significant effect of competition measures on training in Germany. Muehlemann and Wolter (2007) and Muehlemann (2008) find that Swiss firms are less likely to provide apprenticeship training in dense regional labor markets, where the probability that workers are to sponsor general training.…”

Section: Previous Studiesmentioning

confidence: 66%

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Market Imperfections and Firm-Sponsored Training

Picchio

Ours

2010

SSRN Journal

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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. 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.

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Mohrenweiser

2022

Handbook of Labor, Human Resources and Population Economics

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The Impact of Product Market Competition on Employers’ Training Investments. Evidence from German Establishment Panel Data

Abstract: Training, Human capital, Product market competition, J24, D43, C23,

Cited by 18 publications

References 43 publications

Market imperfections and firm-sponsored training

Market imperfections and firm-sponsored training

Market Imperfections and Firm-Sponsored Training

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