Agglomeration Effects on Employer-Provided Training: Evidence from the UK

42 Pages Posted: 29 Mar 2004

See all articles by Giorgio Brunello

Giorgio Brunello

University of Padua - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA)

Francesca Gambarotto

University of Padua - Department of Economics

Date Written: March 2004

Abstract

Recent empirical evidence suggests that the density of local economic activity - measured as the number of employees per square kilometer - positively affects local average productivity. In this paper we use British data from the European Community Household Panel to ask whether local density affects employer-provided training. We find that training is less frequent in economically denser areas. We explain this result as the outcome of the interaction between the positive pooling effects and negative poaching and turnover effects of agglomeration. The size of the negative effect of density is not negligible: when evaluated at the average firm size in the local area, a 10 percent increase in density reduces the probability of employer-provided training by 0.07, more than 20 percent of the average incidence of training in the UK during the sample period.

Keywords: training, spatial economics, Britain

JEL Classification: J24, R12

Suggested Citation

Brunello, Giorgio and Gambarotto, Francesca, Agglomeration Effects on Employer-Provided Training: Evidence from the UK (March 2004). IZA Discussion Paper No. 1055; CESifo Working Paper Series No. 1150. Available at SSRN: https://ssrn.com/abstract=523182

Giorgio Brunello

University of Padua - Department of Economics ( email )

via Del Santo 33
35121 Padova
Italy
+39 049 827 4223 (Phone)
+39 049 827 4221 (Fax)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Francesca Gambarotto (Contact Author)

University of Padua - Department of Economics ( email )

via Del Santo 33
Padova, 35123
Italy
+39 049 827.4237 (Phone)

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