Investment in Job Training : Why Are SMEs Lagging So Much Behind?
This paper analyzes the link between firm size and investment in job training by employers. Using a large firm level data set across 99 developing countries, the analysis shows that a strong and positive correlation in investment in job training an...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100719135753 http://hdl.handle.net/10986/3842 |
| Summary: | This paper analyzes the link between
firm size and investment in job training by employers. Using
a large firm level data set across 99 developing countries,
the analysis shows that a strong and positive correlation in
investment in job training and firm size is a robust
statistical finding both within and across countries with
very different institutions and level of development.
However, the findings do not support the view that this
difference is mostly driven by market imperfections
disproportionally affecting small and medium enterprises.
Rather, the evidence is supportive of small and medium
enterprises having a smaller expected return from the
investment in job training than larger firms. Therefore, the
findings call for caution when designing pro-small and
medium enterprises policies fostering investment in
on-the-job training. |
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