Abstract

The returns to firm-provided training are established, taking account of three possible firm-size effects: the HRM (Human Resource Management) effect, employee selection effect and scale effect. Using panel data on 173 Dutch firms, support is found for the existence of the HRM effect: training support per working day (the average time a firm spends on setting up and coordinating a training programme) has a positive influence on the benefits of training. Small firms provide, on average, less training support per working day than their larger counterparts. In combination with the HRM effect, this implies that small firms benefit less from firm-provided training.

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