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Local Employer Competition and Training of Workers

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  • Rzepka, Sylvi

    (University of Potsdam)

  • Tamm, Marcus

    (Hochschule der Bundesagentur für Arbeit (HdBA))

Abstract

The new training literature suggests that in a monopsonistic market employers will not only pay for firm-specific training but also for general training if the risk of poaching is limited. This implies that training participation should decrease when competition for employees is higher among firms. Using worker level data for Germany we find that the hypothesis is supported empirically. Specifically, we find that employees are significantly less likely to participate in training if the density of firms in a sector is higher within the local labor market.

Suggested Citation

  • Rzepka, Sylvi & Tamm, Marcus, 2013. "Local Employer Competition and Training of Workers," IZA Discussion Papers 7853, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7853
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    References listed on IDEAS

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    Cited by:

    1. Hinz, Tina & Lechmann, Daniel S. J., 2019. "The role of job satisfaction and local labor market conditions for the dissolution of worker-job matches," Discussion Papers 109, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    2. Tina Hinz & Jens Mohrenweiser, 2019. "Competition, Institutions and Company-sponsored Training," Economics of Education Working Paper Series 0162, University of Zurich, Department of Business Administration (IBW).
    3. Görlitz, Katja & Rzepka, Sylvi, 2014. "Does regional training supply determine employees' training participation?," Discussion Papers 2014/9, Free University Berlin, School of Business & Economics.
    4. Emilio Colombo & Alberto Marcato, 2021. "Skill Demand and Labour Market Concentration: Theory and Evidence from Italian Vacancies," DISEIS - Quaderni del Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo dis2104, Università Cattolica del Sacro Cuore, Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo (DISEIS).
    5. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.
    6. Hinz, Tina & Mohrenweiser, Jens, 2017. "The Effect of Regional Competition and Company-sponsored Training on the Productivity-Wage Wedge," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168292, Verein für Socialpolitik / German Economic Association.
    7. Laible, Marie-Christine & Anger, Silke & Baumann, Martina, 2020. "Personality Traits and Further Training," IAB-Discussion Paper 202034, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Katja Görlitz & Sylvi Rzepka, 2017. "Regional training supply and employees’ training participation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 281-296, July.

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    More about this item

    Keywords

    monopsony; local labor markets; training;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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