Barriers to entry, deregulation and workplace training:a theoretical model with evidence from Europe

Bassanini, Andrea and Brunello, Giorgio (2011) Barriers to entry, deregulation and workplace training:a theoretical model with evidence from Europe. European Economic Review, 55 (8). pp. 1152-1176. ISSN 0014-2921

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Abstract

We study the impact of regulatory barriers to entry on workplace training. We develop a model of training in imperfectly competitive product and labour markets. The model indicates that there are two contrasting effects of deregulation on training. As stressed in the literature, 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 following deregulation, thereby raising output and profit gains from training and improving investment incentives. The latter effect prevails. In line with the predictions of the theoretical model, we find that the substantial deregulation in the 1990s of heavily regulated European industries (energy, transport and communication) increased training incidence.

Item Type:
Journal Article
Journal or Publication Title:
European Economic Review
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/2000/2002
Subjects:
ID Code:
67290
Deposited By:
Deposited On:
28 Oct 2013 09:18
Refereed?:
Yes
Published?:
Published
Last Modified:
24 Jun 2020 02:22