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

  • Laia Castany

    ()

    (Faculty of Economics, University of Barcelona)

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    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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    File URL: http://www.ub.edu/irea/working_papers/2008/200808.pdf
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    Paper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 200808.

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    Length: 33 pages
    Date of creation: Jun 2008
    Date of revision: Jun 2008
    Handle: RePEc:ira:wpaper:200808
    Contact details of provider: Postal: Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona
    Web page: http://www.ub.edu/irea/
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    1. Johnson, Joanne & Baldwin, John R. & Gray, Tara, 1995. "Technology Use, Training and Plant-specific Knowledge in Manufacturing Establishments," Analytical Studies Branch Research Paper Series 1995086e, Statistics Canada, Analytical Studies Branch.
    2. 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.
    3. Leung, Siu Fai & Yu, Shihti, 1996. "On the choice between sample selection and two-part models," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 197-229.
    4. Omar Licandro, & Reyes Maroto & Luis A. Puch, . "Innovation, investment and productivity: Evidence from Spanish firms," Working Papers 2003-30, FEDEA.
    5. Cecilia Albert & Carlos García-Serrano & Virginia Hernanz, 2004. "Firm-provided training and temporary contracts," Spanish Economic Review, Springer, vol. 7(1), pages 67-88, January.
    6. Laia Castany & Enrique López-Bazo & Rosina Moreno, 2007. "Decomposing differences in total factor productivity across firm size," Working Papers XREAP2007-01, Xarxa de Referència en Economia Aplicada (XREAP), revised Mar 2007.
    7. Ugidos Olazabal, Arantza & Gardeazabal, Javier, 2002. "More on Identification on Detailed Wage Decompositions," DFAEII Working Papers 2002-17, University of the Basque Country - Department of Foundations of Economic Analysis II.
    8. 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.
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