The ‘new firm paradigm’ and the provision of training: The impact of ICT, workplace organization and human capital

Heinz Hollenstein,Tobias Stucki

doi:10.1007/bf03399378

Heinz Hollenstein, Tobias Stucki

Open Access

https://doi.org/10.1007/bf03399378

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Abstract

SummaryThe paper analyzes the relevance of the three constituent elements of the ‘new firm paradigm’, i.e. ICT, workplace organization and human capital, as determinants of a firm’s provision of training. We concentrate on apprenticeship training, which in German-speaking countries is a widespread practice of skill formation. Econometric studies dealing with a firm’s provision of apprenticeships so far did not pay much attention to the influence of a shift towards the new paradigm. We find that apprenticeship training is an appropriate way of skill formation in advanced economies, but this may not be the case in leading-edge segments of the economy.

Highlights

Over the last twenty years a significant shift in the employment structure from low to high skills has taken place in advanced economies
The investigation is expected to give some indication of the appropriateness of the apprenticeship system as a way of skill formation in a highly advanced knowledge-based economy where the new firm paradigm plays a significant role
We primarily are interested in the influence on training propensity exerted by the variables representing the core dimensions of the new firm paradigm, i.e. human capital, Information and Communication Technology (ICT) and workplace organization

Summary

Introduction

Over the last twenty years a significant shift in the employment structure from low to high skills has taken place in advanced economies. On the demand side, a skill-bias of technical change (in particular the diffusion of ICT) and a similar skill-bias of the redesign of workplace organization. The demand side elements, in particular the diffusion of ICT and adaptations of workplace organization are the key factors driving the observed increase of the share of high skilled workers in total employment. The authors gratefully acknowledge the useful comments and suggestions of Uschi Backes-Gellner, Stefan Wolter and the members of the Advisory Board. We thank Spyros Arvanitis, Peter Egger and Ulrich Kaiser for helpful comments and suggestions

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