Barriers to Entry, Deregulation and Workplace Training: A Theoretical Model with Evidence from Europe

Andrea Bassanini and Giorgio Brunello

No 2945, CESifo Working Paper Series from CESifo

Abstract: We study the impact of barriers to entry on workplace training. Our theoretical model indicates that there are two contrasting effects of deregulation on training. With a given number of firms, deregulation reduces the size of rents per unit of output that firms can reap by training their employees. Yet, the number of firms increases, thereby raising output and profit gains from training and improving investment incentives. The latter effect always prevails. Our empirical analysis, based on repeated cross-section data from 15 European countries and 12 industries, confirms the predictions of the model and shows that deregulation increases training incidence.

Keywords: training; product market competition; Europe (search for similar items in EconPapers)
JEL-codes: J24 L11 O43 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (14)

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Journal Article: Barriers to entry, deregulation and workplace training: A theoretical model with evidence from Europe (2011)
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