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Training And Establishment Survival

Author

Listed:
  • William Collier
  • Francis Green
  • John Peirson

Abstract

Training decisions are affected by beliefs about the returns to training, surrounding which firms face considerable uncertainty. We model the consequent association between training, profitability and establishment survival. We propose a plausible definition of optimism about training effectiveness, and show that more optimistic firms train more. We then present estimates of the relationship between training and the likelihood of medium‐term commercial survival. We find that increased training of non‐manual workers in large establishments is associated with a greater chance of survival; however, disaggregation reveals that the association differs across occupational groups. In smaller establishments, increased training for Craft and Technical workers is associated with better chances of survival, while for Professional workers the opposite effect is found.

Suggested Citation

  • William Collier & Francis Green & John Peirson, 2005. "Training And Establishment Survival," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(5), pages 710-735, November.
    • Handle: RePEc:bla:scotjp:v:52:y:2005:i:5:p:710-735
    DOI: 10.1111/j.1467-9485.2005.00363.x
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    Cited by:

    1. Metcalfe, Renuka & Sloane, Peter J., 2007. "Human Capital Spillovers and Economic Performance in the Workplace in 2004: Some British Evidence," IZA Discussion Papers 2774, Institute of Labor Economics (IZA).
    2. Asplund, Rita, 2004. "The Provision and Effects of Company Training. A brief review of the literature," Discussion Papers 907, The Research Institute of the Finnish Economy.
    3. Bryson, Alex & Forth, John, 2016. "What Role Did Management Practices Play in SME Growth Post-Recession?," IZA Discussion Papers 10042, Institute of Labor Economics (IZA).
    4. Sasongko Budi & Widarni Eny Lestari & Bawono Suryaning, 2020. "Training Analysis and Locus of Control on Self Efficacy and Work Ability of Employees," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 11(1), pages 29-50, April.
    5. Filipe Almeida‐Santos & Karen Mumford, 2005. "Employee Training And Wage Compression In Britain," Manchester School, University of Manchester, vol. 73(3), pages 321-342, June.
    6. Jed Devaro & Fidan Ana Kurtulus, 2011. "What types of organizations benefit from teams, and how do they benefit?," UMASS Amherst Economics Working Papers 2011-16, University of Massachusetts Amherst, Department of Economics.
    7. William Collier & Francis Green & Young-Bae Kim & John Peirson, 2011. "Education, Training and Economic Performance: Evidence from Establishment Survival Data," Journal of Labor Research, Springer, vol. 32(4), pages 336-361, December.
    8. Rita Asplund, 2005. "The Provision and Effects of Company Training: A Brief Review of the Literature," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 47-73.
    9. Nam Pham Xuan & Thanh Ha Le, 2023. "Bribery and firm survival in Vietnam: Moderating effects of market competition, credit, and institutional constraints," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 1242-1269, May.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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