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Firm-sponsored training in regulated labour markets: evidence from Spain


  • Carlos Peraita


Using data from the 1994 European Community Household Panel Survey, the author examines who receives formal firm-sponsored training in Spain. The author finds that the distribution of firm-sponsored training in the work force is uneven and concentrated among more skilled workers in the upper deciles of the wage distribution. The data show that the likelihood of receiving firm-sponsored training for a low education employee is much lower. Also, the better-educated employees in high wage occupations of the largest establishments have higher probabilities of receiving specific training. Spain has a highly regulated labour market, and the labour market frictions and institutions compress and distort the structure of wages. However, the results suggest that the highly compressed wage structure do not provide firms with the incentive to invest in general training.

Suggested Citation

  • Carlos Peraita, 2005. "Firm-sponsored training in regulated labour markets: evidence from Spain," Applied Economics, Taylor & Francis Journals, vol. 37(16), pages 1885-1898.
  • Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1885-1898
    DOI: 10.1080/00036840500194102

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    References listed on IDEAS

    1. Nickell, Stephen & Bell, Brian, 1996. "Changes in the Distribution of Wages and Unemployment in OECD Countries," American Economic Review, American Economic Association, vol. 86(2), pages 302-308, May.
    2. Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages 112-142, February.
    3. McIntosh, Steven, 1999. "A cross-country comparison of the determinants of vocational training," LSE Research Online Documents on Economics 20213, London School of Economics and Political Science, LSE Library.
    4. Peraita, Carlos, 2001. "Testing the Acemoglu-Pischke model in Spain," Economics Letters, Elsevier, vol. 72(1), pages 107-115, July.
    5. Booth, Alison L & Zoega, Gylfi, 2000. "Why Do Firms Invest in General Training? 'Good' Firms and 'Bad' Firms as a Source of Monopsony Power," CEPR Discussion Papers 2536, C.E.P.R. Discussion Papers.
    6. Daron Acemoglu, 2002. "Directed Technical Change," Review of Economic Studies, Oxford University Press, vol. 69(4), pages 781-809.
    7. John M. Barron & Mark C. Berger & Dan A. Black, 1997. "On-the-Job Training," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ojt, November.
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    Cited by:

    1. Laia Castany, 2008. "The Role of Firm Size in Training Provision Decisions: evidence from Spain," Economics of Education Working Paper Series 0028, University of Zurich, Department of Business Administration (IBW).
    2. Laia Castany, 2010. "The role of size in firms' training: evidence from Spain," International Journal of Manpower, Emerald Group Publishing, vol. 31(5), pages 563-584, August.

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