<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The benefits of formal training are numerous, and yet in many regions few firms utilize them. In this study, we build on the literature by exploring how two forms of human capital–the quality of management practices and the proportion of university educated employees - influence the adoption of formal training. Using both cross-sectional and panel firm-level data for 29 economies in Eastern Europe and Central Asia (ECA) and 6 Middle East and North Africa (MENA) economies, management practices of the firm are found to be positively correlated with the implementation of formal training in ECA but not in MENA. The proportion of university educated workers is positively correlated with formal training in both ECA and MENA, but the finding is more robust for the latter. The study explores potential explanations why management practices have no influence on formal training in MENA and related policy implications.</p>
</abstract>

The benefits of formal training are numerous, and yet in many regions few firms utilize them. In this study, we build on the literature by exploring how two forms of human capital–the quality of management practices and the proportion of university educated employees - influence the adoption of formal training. Using both cross-sectional and panel firm-level data for 29 economies in Eastern Europe and Central Asia (ECA) and 6 Middle East and North Africa (MENA) economies, management practices of the firm are found to be positively correlated with the implementation of formal training in ECA but not in MENA. The proportion of university educated workers is positively correlated with formal training in both ECA and MENA, but the finding is more robust for the latter. The study explores potential explanations why management practices have no influence on formal training in MENA and related policy implications.

The human capital of firms and the formal training of workers

IZA Journal of Development and Migration

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"The human capital of firms and the formal training of workers"}

The benefits of formal training are numerous, and yet in many regions few firms utilize them. In this study, we build on the literature by exploring how two...

The human capital of firms and the formal training of workers

Published Online: Dec 08, 2023

Page range: -

Accepted: Feb 21, 2023

DOI: https://doi.org/10.2478/izajodm-2023-0004

Keywords
Training, Firm-level data, Human Capital, Management Practices

© 2023 Asif M. Islam et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

The human capital of firms and the formal training of workers

Published Online: Dec 08, 2023

Page range: -

Accepted: Feb 21, 2023

DOI: https://doi.org/10.2478/izajodm-2023-0004

KeywordsTraining, Firm-level data, Human Capital, Management Practices

© 2023 Asif M. Islam et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Training, Firm-level data, Human Capital, Management Practices