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Firm-sponsored training and poaching externalities in regional labor markets

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  • Muehlemann, Samuel
  • Wolter, Stefan C.

Abstract

A firm's decision to invest in the general human capital of its workers can be affected by labor market conditions. Firms located close to a large number of competitors might refrain from financing general training because skilled workers may be poached after completion of training. To better incorporate economic realities, we apply a novel definition of regional labor markets based on travel time rather than travel distance or political borders. Our results show that firms provide less training in dense regional labor markets, indicating that (potential) labor poaching affects the training behavior of firms. Moreover, the threat of poaching is relevant only if general training is financed by the employer.

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 41 (2011)
Issue (Month): 6 ()
Pages: 560-570

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Handle: RePEc:eee:regeco:v:41:y:2011:i:6:p:560-570

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Web page: http://www.elsevier.com/locate/regec

Related research

Keywords: Regional labor markets; Poaching; Firm density; Firm training;

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References

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Citations

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Cited by:
  1. Christoph Ehlert, 2013. "Did Customers Benefit from the Reorganisation of Customer Management in German Employment Agencies?," Ruhr Economic Papers 0462, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  2. Sylvi Rzepka & Marcus Tamm, 2013. "Local Employer Competition and Training of Workers," Ruhr Economic Papers 0463, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  3. Anika Jansen & Mirjam Strupler Leiser & Felix Wenzelmann & Stefan C. Wolter, 2012. "The effect of labor market regulations on training behavior and quality: the German labor market reform as a natural experiment," Economics of Education Working Paper Series 0083, University of Zurich, Institute for Strategy and Business Economics (ISU).
  4. Görlitz, Katja & Rzepka, Sylvi, 2014. "Does Regional Training Supply Determine Employees' Training Participation?," IZA Discussion Papers 8101, Institute for the Study of Labor (IZA).
  5. Picchio, M. & Ours, J.C. van, 2010. "Market Imperfections and Firm-Sponsored Training," Discussion Paper 2010-57, Tilburg University, Center for Economic Research.
  6. Blatter, Marc & Mühlemann, Samuel & Schenker, Samuel & Wolter, Stefan C., 2012. "Hiring Costs of Skilled Workers and the Supply of Firm-Provided Training," IZA Discussion Papers 6344, Institute for the Study of Labor (IZA).

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