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Agglomeration Effects on Employer-Provided Training: Evidence from the UK

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  • Brunello, Giorgio

    (University of Padova)

  • Gambarotto, Francesca

    (University of Padova)

Abstract

Recent empirical evidence suggests that the density of local economic activity – measured as the number of employees per squared kilometer – positively affects local average productivity. In this paper we use British data from the European Community Household Panel to ask whether local density affects employer–provided training. We find that training is less frequent in economically denser areas. We explain this result as the outcome of the interaction between the positive pooling effects and negative poaching and turnover effects of agglomeration. The size of the negative effect of density is not negligible: when evaluated at the average firm size in the local area, a 10 percent increase in density reduces the probability of employer–provided training by 0.07, more than 20 percent of the average incidence of training in the UK during the sample period.

Suggested Citation

  • Brunello, Giorgio & Gambarotto, Francesca, 2004. "Agglomeration Effects on Employer-Provided Training: Evidence from the UK," IZA Discussion Papers 1055, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp1055
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    Cited by:

    1. Muehlemann, Samuel & Wolter, Stefan C., 2007. "Regional effects on employer-provided training: Evidence from apprenticeship training in Switzerland," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 135-147.
    2. Konstantinos Angelopoulos & Andrea Benecchi & James Malley, 2017. "Can subsidising job-related training reduce inequality?," Working Papers 2017_10, Business School - Economics, University of Glasgow.
    3. Uschi Backes-Gellner & Johannes Mure, 2005. "The Skill-Weights Approach on Firm Specific Human Capital: Empirical Results for Germany," Working Papers 0056, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Apr 2005.
    4. Naoki Shintoyo, 2008. "Creation of jobs and firm-sponsored training in a matching model of unemployment," Journal of Economics, Springer, vol. 93(2), pages 145-176, March.
    5. Diez-Vial, Isabel, 2011. "Geographical cluster and performance: The case of Iberian ham," Food Policy, Elsevier, vol. 36(4), pages 517-525, August.
    6. Samuel Muehlemann & Stefan Wolter, 2014. "Return on investment of apprenticeship systems for enterprises: Evidence from cost-benefit analyses," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-22, December.
    7. Melanie K. Jones & Paul L. Latreille & Peter J. Sloane, 2008. "Crossing the Tracks? Trends in the Training of Male and Female Workers in Great Britain," British Journal of Industrial Relations, London School of Economics, vol. 46(2), pages 268-282, June.
    8. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute of Labor Economics (IZA).
    9. Beblavý, Miroslav & Thum, Anna-Elisabeth & Potjagailo, Galina, 2013. "When do adults learn? A cohort analysis of adult education in Europe," CEPS Papers 8059, Centre for European Policy Studies.
    10. repec:ces:ifodic:v:4:y:2006:i:4:p:14567440 is not listed on IDEAS
    11. Giorgio Brunello, 2006. "Workplace Training and Labour Market Institutions in Europe," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(04), pages 33-41, February.
    12. Konstantinos Angelopoulos & Andrea Benecchi & Jim Malley, 2017. "Can Subsidising Job-Related Training Reduce Inequality?," CESifo Working Paper Series 6605, CESifo.
    13. Ardiana N. Gashi & Geoff Pugh & Nick Adnett, 2010. "Technological change and employer-provided training: evidence from UK workplaces," International Journal of Manpower, Emerald Group Publishing, vol. 31(4), pages 426-448, July.
    14. Giorgio Brunello & Maria De Paola, 2004. "Market Failures and the Under-Provision of Training," CESifo Working Paper Series 1286, CESifo.
    15. Muehlemann, Samuel & Wolter, Stefan C., 2007. "Regional effects on employer-provided training: Evidence fromapprenticeship training in Switzerland," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 135-147.
    16. Giorgio Brunello, 2006. "Workplace Training and Labour Market Institutions in Europe," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(4), pages 33-41, 02.
    17. Carmichael, Fiona & Ercolani, Marco G., 2015. "Age-training gaps across the European Union: How and why they vary across member states," The Journal of the Economics of Ageing, Elsevier, vol. 6(C), pages 163-175.
    18. Muehlemann, Samuel & Wolter, Stefan C., 2007. "Regional effects on employer-provided training: Evidence from apprenticeship training in Switzerland," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 135-147.

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    More about this item

    Keywords

    Britain; spatial economics; training;
    All these keywords.

    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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