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Not all firms are created equal: SMEs and vocational training in the UK, Italy, and Germany

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  • Benassi, Chiara
  • Durazzi, Niccolo
  • Fortwengel, Johann

Abstract

Why do skill formation systems put SMEs at greater disadvantage in some countries than others vis-à-vis large employers? By comparing vocational education and training (VET) institutions and their differential effect on firms of different sizes across three countries (UK, Italy, and Germany), we show that the design of VET has profound implications for shaping the ability of SMEs to use institutions as resources. In particular, quasi-market institutions in the UK amplify SMEs' disadvantage, while non-market coordinating institutions in Italy and Germany narrow the gap between SMEs and large employers. By unpacking the comparative disadvantage of SMEs, we offer important nuances to the argument that institutions help firms coordinate their business activities in different varieties of capitalism.

Suggested Citation

  • Benassi, Chiara & Durazzi, Niccolo & Fortwengel, Johann, 2020. "Not all firms are created equal: SMEs and vocational training in the UK, Italy, and Germany," MPIfG Discussion Paper 20/4, Max Planck Institute for the Study of Societies.
    • Handle: RePEc:zbw:mpifgd:204
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    References listed on IDEAS

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    Cited by:

    1. Niccolo Durazzi, 2023. "Engineering the expansion of higher education: High skills, advanced manufacturing, and the knowledge economy," Regulation & Governance, John Wiley & Sons, vol. 17(1), pages 121-141, January.

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