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IZA Discussion Paper No. 7853
December 2013
Local Employer Competition and Training of Workers
Sylvi Rzepka, Marcus Tamm

published in: Applied Economics, 2016, 48 (35), 3307-3321

The new training literature suggests that in a monopsonistic market employers will not only pay for firm-specific training but also for general training if the risk of poaching is limited. This implies that training participation should decrease when competition for employees is higher among firms. Using worker level data for Germany we find that the hypothesis is supported empirically. Specifically, we find that employees are significantly less likely to participate in training if the density of firms in a sector is higher within the local labor market.

Kommunikation
Mark Fallak
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+352 585-855-526
World of Labour
Olga Nottmeyer
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+352 585-855-501
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Christina Gathmann
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Das IZA@LISER-Netzwerk ist eine weltweite Gemeinschaft für exzellente Forschung in der Arbeitsmarktökonomie und angrenzenden Fachgebieten. Nach dem Wechsel von Bonn wird das Netzwerk nun am Luxembourg Institute of Socio-Economic Research (LISER) koordiniert.

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