School of Economics

2002 Discussion Papers

School of Economics Discussion Paper 02/08
July 2002
(revised January 2003)

Training and Establishment Survival
William Collier, Francis Green, John Peirson and David Wilkinson

School of Economics
University of Kent at Canterbury

Abstract

We investigate the relationship between training and the likelihood of commercial survival over a 7-year period, using a survey of British establishments. We find that in establishments of 200 or more employees, increased training of those in Professional, Sales, and Clerical and Secretarial occupations is associated with a greater chance of survival. In smaller establishments of less than 200 employees, increased training for Operatives and Assembly workers, Personal and Protective Service workers, and Craft and Technical workers is associated with better chances of survival. We interpret these findings as suggesting that training for these groups generated above-normal returns.

JEL Classification: J24, J51, L21

Keywords: Training, survival, economic performance

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