Training participation of internationalized firms: establishment-level evidence for Switzerland

Abstract

BackgroundSwitzerland is host to many international companies, and a large share of Swiss firms is exporting goods and services abroad. While the vocational education and training (VET) system in Switzerland has a long tradition, there is a paucity of studies investigating the effects of the ongoing internationalization on the training participation of internationalized firms.MethodsThe empirical analysis uses representative cross-sectional survey data for Switzerland to estimate a firm’s training decision in 2009. I apply multivariate regression techniques to account for observable differences between domestic and internationalized firms.ResultsThe results show that small and internationalized firms with less than 50 employees have a significantly lower training probability than comparable domestic firms, while this is not the case for larger firms – mainly because internationalized firms are too specialized and provide internal training to workers without a VET degree. Relating the results to the theory of the varieties of capitalism, I find no statistically significant differences in the training participation of similar-sized firms with headquarters in typical liberal market economies (United States, United Kingdom) and a coordinated market economy (Germany), stressing the importance of other factors such as location, sector, firm size, and the local labor market environment.ConclusionWhile large internationalized firms show a similar training participation as domestic firms, a large fraction of small and internationalized firms does not offer apprenticeships even though they are aware of a potentially suitable training occupation. Thus policies promoting alternative forms of training, such as training networks that facilitate access to apprenticeship training for small and specialized firms, may possibly increase the future training participation of internationalized firms.JEL-codesJ24; M51; M53