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

IZA Journal of Labor & Development

Table 7 Determinants of the size-job training differential: Role of information, contracts and uncertainty

	(1)	(2)	(3)	(4)	(5)	(6)
Small Firms	0.0831	0.157	0.136	0.148	0.142	0.154
	[0.0216]***	[0.0106]***	[0.0119]***	[0.0161]***	[0.0112]***	[0.0113]***
Medium Firms	0.278	0.345	0.344	0.326	0.327	0.35
	[0.0287]***	[0.0134]***	[0.0181]***	[0.0197]***	[0.0146]***	[0.0152]***
Large Firms	0.352	0.439	0.453	0.411	0.419	0.439
	[0.0277]***	[0.0135]***	[0.0187]***	[0.0203]***	[0.0158]***	[0.0153]***
Managerial Terciary Education	0.132	-	-	-	-	-
	[0.0151]***
Share Temporary Contracts	-	0.00189	-	-	-	-
		[0.000248]***
Share Unionized Workers	-	-	0.000924	-	-	-
			[0.000255]***
Share of Profits Reinvested	-	-	-	0.000853	-	-
				[0.000131]***
Access to External Finance	-	-	-	-	0.0463	-
					[0.0104]***
Uncertainty Economic Policy	-	-	-	-	-	−0.0328
						[0.0127]***
Baseline Specification?	Yes	Yes	Yes	Yes	Yes	Yes
Country - Sector Fixed Effects?	Yes	Yes	Yes	Yes	Yes	Yes
Observations	12,892	29,644	19,050	18,997	28,677	21,617

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 level. Columns (1) reports the baseline specification as in column (3) of Table 3. Column (2) through (6) report different robustness based on alternative firm characteristics. In addition to column (1), we have controls for the managerial tertiary education (column 2), share of temporary contracts (column 3), share of unionized workers (column 4), share of profits reinvested (column 5), access to external finance (column 6) and uncertainty on the regulatory environment (column 7). All the variables are defined in Additional file 3.