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The Role of Firm Size in Training Provision Decisions: evidence from Spain

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Author Info
Laia Castany () (Universitat de Barcelona)
Abstract

The level of training provided by small firms to their employees is below that provided by their larger counterparts. The provision of firm-related training is believed to be associated to certain characteristics of the firm. In this paper we argue that small firms provide fewer training opportunities as they are less likely to be associated with these characteristics than large firms. The suitability of estimating training decisions as a double-decision process is examined here: first, a firm has to decide whether to provide training or not and, second, having decided to do so, the amount of training to provide. The differences in training provision between small and large firms are decomposed in order to analyse the individual contribution of these characteristics to explaining the gap. The results show that small firms face greater obstacles in accessing training and that the main reasons for that are related to their technological activity and the geographical scope of the market in which they operate.

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Publisher Info
Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Economics of Education Working Paper Series with number 0028.

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Length: 35 pages
Date of creation: May 2008
Date of revision:
Handle: RePEc:iso:educat:0028

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Related research
Keywords: Continuous training; Firm size; Innovative activity;

Find related papers by JEL classification:
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
M53 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Training
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Groot, Wim & van den Brink, Henriette Maassen, 2003. "Firm-related training tracks: a random effects ordered probit model," Economics of Education Review, Elsevier, vol. 22(6), pages 581-589, December. [Downloadable!] (restricted)
  2. Javier Gardeazabal & Arantza Ugidos, 2004. "More on Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 1034-1036, 04. [Downloadable!] (restricted)
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  3. Holger Görg & Eric Strobl, 2005. "Do Government Subsidies Stimulate Training Expenditure? Microeconometric Evidence from Plant Level Data," IZA Discussion Papers 1606, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Oosterbeek, Hessel, 1996. "A Decomposition of Training Probabilities," Applied Economics, Taylor and Francis Journals, vol. 28(7), pages 799-805, July. [Downloadable!] (restricted)
  5. Omar LICANDRO & Reyes MAROTO & Luis A. PUCH, 2004. "Innovation, investment and productivity: evidence from Spanish firms," Economics Working Papers ECO2004/07, European University Institute. [Downloadable!]
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  6. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March. [Downloadable!] (restricted)
  7. Guilkey, David K. & Murphy, James L., 1993. "Estimation and testing in the random effects probit model," Journal of Econometrics, Elsevier, vol. 59(3), pages 301-317, October. [Downloadable!] (restricted)
  8. Valdemar Smith & Mogens Dilling-Hansen & Tor Eriksson & Erik Strøjer Madsen, 2000. "R&D and Productivity in Danish Firms: Some Empirical Evidence," CIE Discussion Papers 2000-05, University of Copenhagen. Department of Economics. Centre for Industrial Economics. [Downloadable!]
    Other versions:
  9. Laia Castany & Enrique Lopez-Bazo & Rosina Moreno, 2007. "Decomposing differences in total factor productivity across firm size," IREA Working Papers 200705, University of Barcelona, Research Institute of Applied Economics, revised Mar 2007. [Downloadable!]
    Other versions:
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