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Is there a Size-Induced Market Failure in Skills Training?

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Listed:
  • Paul Vandenberg
  • Long Q Trinh

Abstract

A skilled and educated workforce can support the competitiveness of enterprises of all sizes. However, smaller firms may face greater challenges in developing human capital. We explore differences between smaller and larger firms in offering skills training and in hiring workers with more formal education. Drawing on a dataset of enterprises in five Asian countries, we find major size-based differences in education and training. While smaller firms train less, they also are less inclined to view an inadequately skilled workforce as a major constraint on their operations. It may be that smaller firms are content to occupy niches in a low-skills equilibrium. [ADBI Working Paper 598]

Suggested Citation

  • Paul Vandenberg & Long Q Trinh, 2016. "Is there a Size-Induced Market Failure in Skills Training?," Working Papers id:11386, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:11386
    Note: Institutional Papers
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    References listed on IDEAS

    as
    1. Meghana Ayyagari & Asli Demirguc-Kunt & Vojislav Maksimovic, 2014. "Who creates jobs in developing countries?," Small Business Economics, Springer, vol. 43(1), pages 75-99, June.
    2. Ashton, David. & Sung, Johnny. & Raddon, Arwen. & Riordan, Trevor., 2008. "Challenging the myths about learning and training in small and medium- sized enterprises : implications for public policy?," ILO Working Papers 994028103402676, International Labour Organization.
    3. repec:ilo:ilowps:402810 is not listed on IDEAS
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    More about this item

    Keywords

    Market Failure; skill training; firms; competitiveness; enterprises; human capital; skills training; skilled; educated; competitiveness; enterprises; sizes; education; Asia; workers; on-the-job training; SME; firms; production workers;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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