@TechReport{iza:izadps:dp4988,
            	author={Picchio, Matteo and Ours, Jan C. van},
            	title={Market Imperfections and Firm-Sponsored Training},
            	year={2010},
	month={Jun},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={4988},
            	url={https://www.iza.org/publications/dp4988},
	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.},
	keywords={matched worker-firm data;firm-sponsored training;labor market frictions;product market competition},
            }