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Do spatial agglomeration and local labor market competition affect employer-provided training? Evidence from the UK

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  • Brunello, Giorgio
  • Gambarotto, Francesca

Abstract

In this paper we use British data to ask whether local employment density - which we take as a proxy of labor market competition - affects employer - provided training. We find that training is less frequent in economically denser areas. We interpret this result as evidence that the balance of poaching and local agglomeration effects on training is negative. The effect of density on training is not negligible: when evaluated at the average firm size in the local area, a 1 percent increase in density reduces the probability of employer - provided training by 0.014, close to 4 percent of the average incidence of this type of training in the UK.
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  • Brunello, Giorgio & Gambarotto, Francesca, 2007. "Do spatial agglomeration and local labor market competition affect employer-provided training? Evidence from the UK," Regional Science and Urban Economics, Elsevier, vol. 37(1), pages 1-21, January.
  • Handle: RePEc:eee:regeco:v:37:y:2007:i:1:p:1-21
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    Cited by:

    1. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, Elsevier.
    2. Christos Bilanakos & Colin P. Green & John S. Heywood & Nikolaos Theodoropoulos, 2017. "Do Dominant Firms Provide More Training?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(1), pages 67-95, February.
    3. Hinz, Tina & Mohrenweiser, Jens, 2017. "The Effect of Regional Competition and Company-sponsored Training on the Productivity-Wage Wedge," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168292, Verein für Socialpolitik / German Economic Association.
    4. Görlitz, Katja & Rzepka, Sylvi, 2014. "Does regional training supply determine employees' training participation?," Discussion Papers 2014/9, Free University Berlin, School of Business & Economics.
    5. John S. Heywood & Uwe Jirjahn & Annika Pfister, 2017. "Product Market Competition and Employer Provided Training in Germany," Research Papers in Economics 2017-07, University of Trier, Department of Economics.
    6. Giuseppe Croce & Emanuela Ghignoni, 2012. "Employer-provided Training and Knowledge Spillovers: Evidence from Italian Local Labour Markets," Regional Studies, Taylor & Francis Journals, vol. 46(3), pages 339-353, May.
    7. Picchio, Matteo & van Ours, Jan C., 2011. "Market imperfections and firm-sponsored training," Labour Economics, Elsevier, vol. 18(5), pages 712-722, October.
    8. Giuseppe Croce & Edoardo Di Porto & Emanuela Ghignoni & Andrea Ricci, 2013. "Employer education, agglomeration and workplace training: poaching vs knowledge spillovers," Working Papers 162, University of Rome La Sapienza, Department of Public Economics.
    9. Marusca De Castris & Guido Pellegrini, 2015. "Agglomeration Effects On Regional Unemployment In Europe," Working Papers 0715, CREI Università degli Studi Roma Tre, revised 2015.
    10. Francisca Bremberger & Rudolf Hochholzer & Peter Huber, 2016. "Labour Turnover, Employment Density and Employer Provided Training: Evidence from Vienna," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 2(1), pages 5-22, November.
    11. Stockinger, Bastian & Zwick, Thomas, 2016. "Apprentice Poaching in Regional Labor Markets," Annual Conference 2016 (Augsburg): Demographic Change 145565, Verein für Socialpolitik / German Economic Association.
    12. Cécile Détang-Dessendre, 2010. "Accès à la formation continue en entreprise et caractéristiques des marchés locaux du travail," Économie et Statistique, Programme National Persée, vol. 431(1), pages 115-128.
    13. Francisca Bauer & Rudolf Hochholzer & Peter Huber, 2010. "Labour Turnover, Labour Market Density and In-house Training. Preliminary Results of the Vienna Employment and Skilling Monitor," WIFO Working Papers 367, WIFO.
    14. Sylvi Rzepka & Marcus Tamm, 2016. "Local employer competition and training of workers," Applied Economics, Taylor & Francis Journals, vol. 48(35), pages 3307-3321, July.
    15. Muehlemann, Samuel & Wolter, Stefan C., 2011. "Firm-sponsored training and poaching externalities in regional labor markets," Regional Science and Urban Economics, Elsevier, vol. 41(6), pages 560-570.
    16. Pontus Rendahl, 2013. "Equilibrium Contracts and Firm-sponsored Training," Cambridge Working Papers in Economics 1336, Faculty of Economics, University of Cambridge.
    17. Yang, Guangliang & Li, Lixing & Fu, Shihe, 2017. "Do Rural Migrants Benefit from Labor Market Agglomeration Economies? Evidence from Chinese Cities," MPRA Paper 80713, University Library of Munich, Germany.
    18. repec:spr:anresc:v:59:y:2017:i:1:d:10.1007_s00168-017-0831-8 is not listed on IDEAS
    19. Pierre-Philippe Combes & Laurent Gobillon, 2014. "The Empirics of Agglomeration Economies," Working Papers halshs-01071761, HAL.
    20. Christos Bilanakos & John S. Heywood & John Sessions & Nikolaos Theodoropoulos, 2016. "Delegation and worker training," University of Cyprus Working Papers in Economics 06-2016, University of Cyprus Department of Economics.
    21. Paolo Ghinetti & Simone Moriconi, 2013. "The Wage Return to Graduate in Italian Small-town Universities," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2013(1), pages 39-53.
    22. Dominique Goux, 2010. "L’enquête Formation et Qualification Professionnelle : une source inépuisable pour la recherche en sciences sociales," Économie et Statistique, Programme National Persée, vol. 431(1), pages 3-11.
    23. Sung Hyo Hong, 2014. "Agglomeration and relocation: Manufacturing plant relocation in Korea," Papers in Regional Science, Wiley Blackwell, vol. 93(4), pages 803-818, November.
    24. Grillitsch, Markus & Nilsson, Magnus, 2017. "Knowledge externalities and firm heterogeneity: Effects on high and low growth firms," Papers in Innovation Studies 2017/6, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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