Aterido, ReyesAlmeida, Rita K.2012-03-192012-03-192010-07-01https://hdl.handle.net/10986/3842This paper analyzes the link between firm size and investment in job training by employers. Using a large firm level data set across 99 developing countries, the analysis shows that a strong and positive correlation in investment in job training and firm size is a robust statistical finding both within and across countries with very different institutions and level of development. However, the findings do not support the view that this difference is mostly driven by market imperfections disproportionally affecting small and medium enterprises. Rather, the evidence is supportive of small and medium enterprises having a smaller expected return from the investment in job training than larger firms. Therefore, the findings call for caution when designing pro-small and medium enterprises policies fostering investment in on-the-job training.CC BY 3.0 IGOACCESS TO CAPITALACCESS TO INFORMATIONACCOUNTINGACQUISITION OF SKILLSAGE COHORTAGGREGATE GROWTHBUSINESS ENVIRONMENTCAPITAL LABOR RATIOCONTRACT ENFORCEMENTDEVELOPMENT ECONOMICSECONOMIC BENEFITSECONOMIC EFFICIENCYECONOMIC GROWTHEDUCATED WORKERSEDUCATION TECHNOLOGYEDUCATIONAL ATTAINMENTEMPLOYEEEMPLOYMENTEMPLOYMENT GROWTHENTERPRISE DEVELOPMENTEXOGENOUS VARIABLEEXTERNALITIESFINANCIAL INSTITUTIONSFIRM GROWTHFIRM LEVELFIRM PERFORMANCEFIRM PRODUCTIVITYFIRM SIZEFIRM SIZE DISTRIBUTIONFIRM SIZESFIRM SURVEYSFIRM TURNOVERFIRMSFOREIGN OWNERSHIPFORMAL TRAININGHIGH-TECH FIRMSHUMAN CAPITALHUMAN DEVELOPMENTINCOMEINFORMAL SECTORINFORMAL TRAININGINTERVENTIONSJOB CREATIONJOB TRAININGJOB TURNOVERKNOWLEDGE ECONOMYLABOR ECONOMICSLABOR INTENSITYLABOR MARKETSLABOR PRODUCTIVITYLABOR REGULATIONSLABOR RELATIONSLABOR TURNOVERLABOURLABOUR MARKETLEARNINGLEASINGLEVEL OF EDUCATIONLICENSINGMARGINAL COSTSMARKET FAILURESMEDIUM ENTERPRISEMEDIUM ENTERPRISESMOTIVATIONON-THE-JOB TRAININGPARTYPERFORMANCE INDICATORSPERMANENT WORKERSPRESENT VALUEPREVIOUS WORKPRIVATE SECTORPRODUCTIVITYPRODUCTIVITY GROWTHPROPERTY RIGHTSRENTSSCHOOLINGSKILLED WORKERSSKILLED WORKFORCESKILLS DEVELOPMENTSMALL FIRMSSMESME DEVELOPMENTSME POLICIESSME POLICYSME SECTORTEACHINGTECHNOLOGICAL INNOVATIONTECHNOLOGICAL INNOVATIONSTEMPORARY WORKERSTOTAL FACTOR PRODUCTIVITYTRADE UNIONSTRAINED WORKERSTRAINING CENTERSTRAINING CONTENTTRAINING COSTSTRAINING FIRMSTRAINING INTENSITIESTRAINING INTENSITYTRAINING MATERIALSTRAINING OPPORTUNITIESTRAINING POLICYTRAINING PROGRAMTRAINING PROGRAMSTRAINING SCHEMESTRAINING TYPEUNEMPLOYEDUNSKILLED WORKERSVOCATIONAL EDUCATIONVOCATIONAL TRAININGWAGE STRUCTUREWAGESWORKERWORKING CAPITALYOUTHWorld Bank10.1596/1813-9450-5358