Abstract

This paper investigates differences in training capabilities according to the size of the firm. Larger firms have cost advantages and economies of scale in the provision of formal training, as well as greater opportunity for informal co-worker training. A unique set of data is employed to estimate the relationship between employer size and the intensity, duration and composition of various training measures. These cost advantages may lead to greater amounts of training for employees of large firms, explaining the wage rate-firm size differential. There are several tables within this article.

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