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Worker Training and Competing on Product Quality

Author

Listed:
  • Christos Bilanakos
  • John S. Heywood
  • John Sessions
  • Nikolaos Theodoropoulos

Abstract

We examine the relationship between firm-sponsored training and the sensitivity of product demand to product quality. A quality-adjusted model of monopolistic competition shows the conditions under which the intensity of training increases as product demand becomes more sensitive to quality. Empirical estimates from two cross sections and a panel of British establishments as well as from two matched employee cross sections confirm that training is more intensive when product demand is more sensitive to quality.

Suggested Citation

  • Christos Bilanakos & John S. Heywood & John Sessions & Nikolaos Theodoropoulos, 2014. "Worker Training and Competing on Product Quality," University of Cyprus Working Papers in Economics 08-2014, University of Cyprus Department of Economics.
    • Handle: RePEc:ucy:cypeua:08-2014
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    File URL: https://papers.econ.ucy.ac.cy/RePEc/papers/08-14.pdf
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    References listed on IDEAS

    as
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