Investment in Job Training: Why are Smes Lagging so Much Behind?
51 Pages Posted: 20 Apr 2016
Date Written: July 1, 2010
Abstract
This paper analyzes the link between firm size and investment in job training by employers. Using a large firm level data set across 99 developing countries, the analysis shows that a strong and positive correlation in investment in job training and firm size is a robust statistical finding both within and across countries with very different institutions and level of development. However, the findings do not support the view that this difference is mostly driven by market imperfections disproportionally affecting small and medium enterprises. Rather, the evidence is supportive of small and medium enterprises having a smaller expected return from the investment in job training than larger firms. Therefore, the findings call for caution when designing pro-small and medium enterprises policies fostering investment in on-the-job training.
Keywords: Education For All, Labor Policies, Microfinance, Primary Education, Labor Markets
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Mexico: In-Firm Training for the Knowledge Economy
By Gladys Lopez-acevedo and Hong Tan
-
Pending Issues in Protection, Productivity Growth, and Poverty Reduction
By Omar Arias, Andreas Blom, ...
-
Does Trade Liberalization Always Decrease Union Bargaining Power?
-
Sectoral Allocation by Gender of Latin American Workers Over the Liberalization Period of the 1990s
-
By Omar Arias
-
Teacher Unionization and the Quality of Education in Peru: An Empirical Evaluation Using Survey Data
By Eduardo Zegarra and Renato Ravina
-
SME Policy and Firms’ Productivity in Latin America
By Pablo Ibarraran, Alessandro Maffioli, ...