Investing in formal on-the-job training: are SMEs lagging much behind?

IZA Journal of Labor & Development

Table 3 Determinants of size-job training differential: Role of skills and technological complementarities

	(1)	(2)	(3)	(4)
Small Firms	0.171	0.164	0.144	0.136
	[0.0120]***	[0.0103]***	[0.0114]***	[0.0143]***
Medium Firms	0.378	0.359	0.328	0.317
	[0.0198]***	[0.0130]***	[0.0148]***	[0.0184]***
Large Firms	0.498	0.468	0.421	0.412
	[0.0270]***	[0.0137]***	[0.0157]***	[0.0207]***
Openness	-	0.114	0.104	0.0968
		[0.00765]***	[0.00870]***	[0.00905]***
Age of the Firm (Log)	-	0.00377	0.00432	0.00409
		[0.00445]	[0.00499]	[0.00505]
Public Ownership	-	0.006	0.0034	−0.00289
		[0.0167]	[0.0177]	[0.0283]
Share of Skilled Workers	-	0.101	0.0854	0.078
		[0.0138]***	[0.0146]***	[0.0169]***
Technological Innnovation	-	-	0.173	0.172
			[0.00800]***	[0.00963]***
Country Fixed Effects?	Yes	No	No	No
Country-Sector Fixed Effects?	No	Yes	Yes	No
Country -City-Sector Fixed Effects?	No	No	No	Yes
Observations	47,612	35,644	29,644	29,817

Source: Author’s calculations are based on the Enterprise Suveys (World Bank).
Note: *significantat 10%; **significantat 5%; ***significantat 1%. Dependent variable is a dummy variable that equals 1 when the firm reports providing on-the-job training. Standard errors are clustered at the country and sector level. Column (1) includes country fixed effects, column (2) includes country and sector interactions and column (4) includes country-sector and city interactions. We consider 3 city categories: capital cities and those with a population above one million, and cities below 1 million people. Column (1) includes size dummies; column (2) includes in addition to the variables in column (1), firm openness, log age of the firm, the share of capital owned by public sources and the share of skilled workers in the firm. Column (3) adds a technological innovation dummy, and column (4) replicates column (3) but controls for country-city-sector dummies. We refer to the specification in column (3) of this table as the baseline specification. All the variables are defined in Table Additional file 3.