TY - JOUR
T1 - The Impact of Product Market Competition on Training Provision
T2 - Evidence from Canada
AU - Lai, Tat-kei
AU - Ng, Travis
PY - 2014/8
Y1 - 2014/8
N2 - While standard models of training focus on how input market affects firms' training decisions, this paper investigates the impact of product market competition on training provision. Using the longitudinal data from Statistics Canada's Workplace and Employee Survey, we find that increased competition is strongly associated with more training provision. This association is unlikely to be driven by unobserved heterogeneity, specific measures used and other relevant factors. To the extent that training is a significant source of human capital and industry competitiveness, our results suggest that increasing training is an important channel through which competition raises productivity.
AB - While standard models of training focus on how input market affects firms' training decisions, this paper investigates the impact of product market competition on training provision. Using the longitudinal data from Statistics Canada's Workplace and Employee Survey, we find that increased competition is strongly associated with more training provision. This association is unlikely to be driven by unobserved heterogeneity, specific measures used and other relevant factors. To the extent that training is a significant source of human capital and industry competitiveness, our results suggest that increasing training is an important channel through which competition raises productivity.
U2 - 10.1111/caje.12093
DO - 10.1111/caje.12093
M3 - Journal article
VL - 47
SP - 856
EP - 888
JO - Canadian Journal of Economics
JF - Canadian Journal of Economics
SN - 0008-4085
IS - 3
ER -