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The impact of product market competition on training provision: Evidence from Canada
Author(s) -
Lai Tatkei,
Ng Travis
Publication year - 2014
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/caje.12093
Subject(s) - competition (biology) , productivity , training (meteorology) , product market , human capital , product (mathematics) , business , industrial organization , market competition , survey data collection , economics , microeconomics , economic growth , market economy , ecology , physics , geometry , mathematics , meteorology , biology , incentive , statistics
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.