Do Dominant Firms Provide More Training?

29 Pages Posted: 3 Jun 2017

See all articles by Christos Bilanakos

Christos Bilanakos

Athens University of Economics and Business - Department of Management Science and Technology

Colin P. Green

Department of Economics

John S. Heywood

University of Wisconsin at Milwaukee

Nikolaos Theodoropoulos

University of Cyprus

Date Written: Spring 2017

Abstract

A canonical Cournot competition model shows that the profitability of training can increase as the number of competitors decreases. British establishment evidence from 1998, 2004, and 2011 confirms that firms in less competitive markets provide more formal training. This persists within three separate cross‐sections and in two separate panel estimates. It persists with alternative measures of training, with alternative measures of market competition and in estimates designed to account for endogeneity. These results suggest that a dominant product market position, indeed, increases the incentives to invest in training.

Suggested Citation

Bilanakos, Christos and Green, Colin P. and Heywood, John S. and Theodoropoulos, Nikolaos, Do Dominant Firms Provide More Training? (Spring 2017). Journal of Economics & Management Strategy, Vol. 26, Issue 1, pp. 67-95, 2017, Available at SSRN: https://ssrn.com/abstract=2979701 or http://dx.doi.org/10.1111/jems.12177

Christos Bilanakos (Contact Author)

Athens University of Economics and Business - Department of Management Science and Technology ( email )

Athens GR-11362
Greece

Colin P. Green

Department of Economics ( email )

Høgskoleringen
Trondheim NO-7491, 7491
Norway

John S. Heywood

University of Wisconsin at Milwaukee ( email )

3210 N. Maryland Avenue, Bolton Hall 802
Bolton Hall 802
Milwaukee, WI 53211
United States
414-229-4437 (Phone)
414-229-3860 (Fax)

Nikolaos Theodoropoulos

University of Cyprus ( email )

CY-1678 Nicosia
Nicosia, Nicosia P.O. Box 2
Cyprus

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