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When Do Firms Choose to Train? The Roles of Labour Regulations, Their Enforcement, and Firm and Industry Characteristics

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  • Zara Liaqat
  • Jeffrey B. Nugent

Abstract

This article estimates the effects of rigid labour regulations, their enforcement and other conditions facing individual firms on the likelihood that a firm offers training to its workers. The estimates are based on firm-level data from the Enterprise Surveys. The findings show that the effects of labour regulations vary considerably across firms in ways that reflect interaction between labour regulations on the one hand and enforcement, institutional conditions and firm and industry characteristics on the other. The effects also vary considerably from one type of labour regulation to another and according to the perceived importance of alternative constraints on its business.

Suggested Citation

  • Zara Liaqat & Jeffrey B. Nugent, 2016. "When Do Firms Choose to Train? The Roles of Labour Regulations, Their Enforcement, and Firm and Industry Characteristics," Journal of Development Studies, Taylor & Francis Journals, vol. 52(2), pages 224-241, February.
    • Handle: RePEc:taf:jdevst:v:52:y:2016:i:2:p:224-241
    DOI: 10.1080/00220388.2015.1060316
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    References listed on IDEAS

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    1. Almeida, Rita & Aterido, Reyes, 2008. "The incentives to invest in job training : do strict labor codes influence this decision?," Social Protection Discussion Papers and Notes 46189, The World Bank.
    2. Almeida, Rita & Carneiro, Pedro, 2009. "The return to firm investments in human capital," Labour Economics, Elsevier, vol. 16(1), pages 97-106, January.
    3. Ahsan, Ahmad & Pages, Carmen, 2007. "Are all labor regulations equal ? Assessing the effects of job security, labor dispute, and contract labor laws in India," Policy Research Working Paper Series 4259, The World Bank.
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    Cited by:

    1. Islam Asif M. & Gatti Roberta, 2023. "The human capital of firms and the formal training of workers," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 14(1), pages 1-39, January.
    2. Eugene Bempong Nyantakyi & Qingwei Meng & Matthew T. Palmer, 2022. "Local Skill Development from China’s Engagement in Africa: Comparative Evidence from the Construction Sector in Ghana," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(1), pages 68-85, March.
    3. Zara Liaqat, 2019. "Providing a Safe Working Environment: Do Firm Ownership and Exporting Status Matter?," Asian Development Review, MIT Press, vol. 36(2), pages 215-247, September.

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