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TRAINING AND ESTABLISHMENT SURVIVAL
Author(s) -
Collier William,
Green Francis,
Peirson John
Publication year - 2005
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/j.1467-9485.2005.00363.x
Subject(s) - optimism , craft , training (meteorology) , profitability index , association (psychology) , survival of the fittest , demographic economics , face (sociological concept) , business , economics , actuarial science , psychology , finance , sociology , social psychology , social science , archaeology , evolutionary biology , biology , meteorology , psychotherapist , physics , history
Training decisions are affected by beliefs about the returns to training, surrounding which firms face considerable uncertainty. We model the consequent association between training, profitability and establishment survival. We propose a plausible definition of optimism about training effectiveness, and show that more optimistic firms train more. We then present estimates of the relationship between training and the likelihood of medium‐term commercial survival. We find that increased training of non‐manual workers in large establishments is associated with a greater chance of survival; however, disaggregation reveals that the association differs across occupational groups. In smaller establishments, increased training for Craft and Technical workers is associated with better chances of survival, while for Professional workers the opposite effect is found.