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Does demand for product quality increase worker training?

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  • Bilanakos, Christos
  • Heywood, John S.
  • Sessions, John
  • Theodoropoulos, Nikolaos

Abstract

We uniquely examine the relationship between firm-organized training and the sensitivity of consumer demand to product quality. Cross section, panel fixed effect and instrumental variable estimates confirm that British workplaces provide more intensive training when their product demand is more sensitive to product quality. Robustness checks including using alternative key variable definitions and a counterfactual analysis examining the importance of competing on price support this confirmation.

Suggested Citation

  • Bilanakos, Christos & Heywood, John S. & Sessions, John & Theodoropoulos, Nikolaos, 2018. "Does demand for product quality increase worker training?," Journal of Economic Behavior & Organization, Elsevier, vol. 155(C), pages 159-177.
    • Handle: RePEc:eee:jeborg:v:155:y:2018:i:c:p:159-177
    DOI: 10.1016/j.jebo.2018.08.018
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    More about this item

    Keywords

    Training; Product quality; Demand sensitivity; Competition;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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