Online from: 1980
Subject Area: Economics
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|Title:||The role of size in firms' training: evidence from Spain|
|Author(s):||Laia Castany, (Universitat de Barcelona, Barcelona and AQR – IREA, Spain)|
|Citation:||Laia Castany, (2010) "The role of size in firms' training: evidence from Spain", International Journal of Manpower, Vol. 31 Iss: 5, pp.563 - 584|
|Keywords:||New technology, Spain, Training|
|Article type:||Research paper|
|DOI:||10.1108/01437721011066362 (Permanent URL)|
|Publisher:||Emerald Group Publishing Limited|
|Acknowledgements:||The author is grateful to Hessel Oosterbeek for his suggestions, Enrique López-Bazo for his supervision and Elisabet Motellón for her advice on Yun's methodology. Any errors or oversights are the author's alone. Thanks are also due to an anonymous referee and to the participants at the EEA, SAE, EARIE and at the Conference on Firm Behaviour and Training Policies (University of Zürich). She also acknowledges support from Spanish MECD through grant SEJ2005-07814/ECON and to FUNEP for supplying the data.|
Purpose – The purpose of this paper is to analyse why small firms provide less training to their employees than their larger counterparts. The hypothesis is that large firms are endowed with certain firm characteristics that require more training and with some that allow them to obtain larger returns from this investment.
Design/methodology/approach – The paper analyses the individual contribution of these characteristics to explain the gap between small and large firms in the probability of providing training and its extent using the Oaxaca-Blinder decomposition.
Findings – Small firms face greater obstacles in accessing training and the main reasons for that are related to their technological activity and the geographic scope of the market in which they operate. Together, these variables explain about half of the training gap in both the participation and the quantity decisions.
Practical implications – The limited access to training of small firms prevents them from becoming more competitive by using a tool that would permit a better adoption of new technology and access to foreign markets.
Originality/value – The paper exploits the data on training expenditure and relates this investment with other firms' strategies, such as innovation or internationalization. It also suggests estimating this type of data by means of a two-part model.
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