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Training and Establishment Survival

Author

Listed:
  • William Collier
  • Francis Green
  • John Peirson
  • David Wilkinson

Abstract

We investigate the relationship between training and the likelihood of commercial survival over a 7-year period, using a survey of British establishments. We find that in establishments of 200 or more employees, increased training of those in Professional, Sales, and Clerical and Secretarial occupations is associated with a greater chance of survival. In smaller establishments of less than 200 employees, increased training for Operatives and Assembly workers, Personal and Protective Service workers, and Craft and Technical workers is associated with better chances of survival. We interpret these findings as suggesting that training for these groups generated above-normal returns.

Suggested Citation

  • William Collier & Francis Green & John Peirson & David Wilkinson, 2002. "Training and Establishment Survival," Studies in Economics 0208, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:0208
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    File URL: https://www.kent.ac.uk/economics/repec/0208.pdf
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    References listed on IDEAS

    as
    1. Ann P. Bartel, 1992. "Training, Wage Growth and Job Performance: Evidence From a Company Database," NBER Working Papers 4027, National Bureau of Economic Research, Inc.
    2. Daron Acemoglu & Jorn-Steffen Pischke, 1999. "The Structure of Wages and Investment in General Training," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 539-572, June.
    3. Bartel, Ann P, 1995. "Training, Wage Growth, and Job Performance: Evidence from a Company Database," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 401-425, July.
    4. Alba-Ramirez, Alfonso, 1994. "Formal Training, Temporary Contracts, Productivity and Wages in Spain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(2), pages 151-170, May.
    5. Agarwal, Rajshree, 1996. "Technological activity and survival of firms," Economics Letters, Elsevier, vol. 52(1), pages 101-108, July.
    6. John Bishop, 1994. "The Impact of Previous Training on Productivity and Wages," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 161-200, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. William Collier & Francis Green & Young-Bae Kim & John Peirson, 2011. "Education, Training and Economic Performance: Evidence from Establishment Survival Data," Journal of Labor Research, Springer, vol. 32(4), pages 336-361, December.
    2. Filipe Almeida‐Santos & Karen Mumford, 2005. "Employee Training And Wage Compression In Britain," Manchester School, University of Manchester, vol. 73(3), pages 321-342, June.
    3. Jed Devaro & Fidan Ana Kurtulus, 2011. "What types of organizations benefit from teams, and how do they benefit?," UMASS Amherst Economics Working Papers 2011-16, University of Massachusetts Amherst, Department of Economics.
    4. Alex Bryson & John Forth, 2016. "What Role Did Management Practices Play in SME Growth Post-recession?," DoQSS Working Papers 16-11, Quantitative Social Science - UCL Social Research Institute, University College London.
    5. Sasongko Budi & Widarni Eny Lestari & Bawono Suryaning, 2020. "Training Analysis and Locus of Control on Self Efficacy and Work Ability of Employees," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 11(1), pages 29-50, April.
    6. Asplund, Rita, 2004. "The Provision and Effects of Company Training. A brief review of the literature," Discussion Papers 907, The Research Institute of the Finnish Economy.
    7. Nam Pham Xuan & Thanh Ha Le, 2023. "Bribery and firm survival in Vietnam: Moderating effects of market competition, credit, and institutional constraints," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 1242-1269, May.
    8. Metcalfe, Renuka & Sloane, Peter J., 2007. "Human Capital Spillovers and Economic Performance in the Workplace in 2004: Some British Evidence," IZA Discussion Papers 2774, Institute of Labor Economics (IZA).
    9. Rita Asplund, 2005. "The Provision and Effects of Company Training: A Brief Review of the Literature," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 47-73.

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    More about this item

    Keywords

    Training; survival; economic performance;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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