TY  - RPRT
        AU  - Picchio, Matteo
AU  - Ours, Jan C. van
        TI  - Market Imperfections and Firm-Sponsored Training
        PY  - 2010/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4988
        UR  - https://www.iza.org/publications/dp4988
        AB  - 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.
        KW  - matched worker-firm data
KW  - firm-sponsored training
KW  - labor market frictions
KW  - product market competition
        ER  -