Training: A Strategic Enterprise Decision?

Abstract

This paper analyses the training behaviour of German establishments on the basis of representative and topical data. Especially large and co-determined establishments, investors and establishments bound by collective wage agreements train. In addition, establishments with apprentices and a large share of vacancies are more inclined to train. Also worker characteristics play a role: establishments with a high share of qualified employees train more often while establishments with a high share of employees leaving train less. A participative work place organisation and a state-of-the-art technical equipment have a positive impact on the willingness of the establishment to invest in training. In addition to comparable empirical studies, this paper also includes variables that indicate at which time establishments invest in training. It argues that establishments invest strategically when they expect additional skill demand and when profits allow investments in human capital.