Labour turnover, employment density and employer provided training: Evidence from Vienna

  • Francisca Bremberger
  • Rudolf Hochholzer
  • Peter Huber
Keywords: employer financed training, urban labour markets, density


We analyse the impact of regional and sectoral labour market characteristics as determinants of the supply of employer financed training. The results show that labour turnover has a robust negative impact and employment density a slightly less robust but also negative impact on the probability of a firm to provide employer financed training. Policies directed at increasing employer provided training therefore face substantial challenges in sectors and regions with high labour turnover and employment densities. These challenges are likely to be even larger when it comes to providing employer financed training for less skilled workers.


Acemoglu, D. 1997. Training and Innovation in an Imperfect Labour Market. Review of Economic Studies, 64 (3), 445–464.

Acemoglu, D. and Pischke, J. 1999. The Structure of Wages and Investment in General Training. Journal of Political Economy, 107 (3), 539–572.

Arulampalam, W. et al. 2004. Training in Europe. Journal of the European Economic Association, 2 (2–3), 346–360.

Ariga, K. and Brunello, G. 2006. Are Education and Training Always Complements? Evidence from Thailand. Industrial and Labour Relations Review, 59 (4), 613–629.

Asplund, R. 2005. The Provision and Effects of Company Training: A Brief Review of the Literature. Nordic Journal of Political Economy, 31, 47–73.

Becker, G. S. 1964. Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education. University of Chicago Press, Chicago.

Brunello, G. et al. 2005. Workplace Training in Europe. IZA Discussion Paper No. 1640.

Brunello, G. and de Paola, M. 2008. Training and Economic Density: Some Evidence Form Italian Provinces. Labour Economics, 15 (1), 118–140.

Brunello, G. and Gambarotto, F. 2007. Do Spatial Agglomeration and Local Labour Market Competition Affect Employer-Provided Training? Evidence from the UK. Regional Science and Urban Economics, 37 (1), 1–21.

Card, D. et al. 2007. Cash-on-Hand and Competing Models of Intertemporal Behavior: New Evidence from the Labour Market. Quarterly Journal of Economics, 122 (4), 1511–1560.

Chang, C. and Wang, Y. 1996. Human capital investment under asymmetric information: the Pigovian conjecture revisited. Journal of Labour Economics, 14 (3), 505–509.

Ciccone, A. 2002. Agglomeration Effects in Europe. European Economic Review, 46 (2), 213–227.

Ciccone, A. and Hall, R. 1996. Productivity and the Density of Economic Activity. American Economic Review, 86 (1), 54–70.

Combes, P. P. 2000. Economic Structure and Local Growth: France, 1984–1993. Journal of Urban Economics, 47 (3), 329–355.

Elias, P. and Healey, M. 1994. The Provision and Impact of Job-Related Formal Training in a Local Labour Market. Regional Studies, 28 (6), 577–590.

Fallick, B., Fleischmann, C. A. and Rebitzer, J. A. 2006. Job Hopping in Silicon Valley: Some Evidence Concerning the Micro-Foundations of a High Technology Cluster. Review of Economics and Statistics, 88 (3), 472–481.

Fujita, M. et al. 1999. The spatial economy: Cities, regions, and international trade. Cambridge and London: MIT Press.

Glaeser, E. L. et al. 1992. Growth in Cities. Journal of Political Economy, 100 (6), 1126–1152.

Glaeser, E. L. and Mare, D. C. 2001. Cities and Skills. Journal of Labour Economics, 19 (2), 316–342.

Henderson, V. et al. 1995. Industrial Development in Cities. Journal of Political Economy, 103 (5), 1067–1090.

Huber, P. and Smeral, K. 2006. Measuring Worker Flows. Applied Economics, 38 (14), 1689–1695.

Huber, P. et al. 2002. Analyse der Wiener Wirtschaftsaktivitäten. Teil I: Analyse, Studie des Österreichischen Instituts für Wirtschaftsforschung. WIFO, Wien.

Hughes, G. et al. 2004. Company Training and Low-Skill Consumer-Service Jobs in Ireland. International Journal of Manpower, 25 (1), 17–35.

Ichino, A. et al. 2007. Too Old to Work, Too Young to Retire? CEPR Discussion Papers 6517.

Katz, E. and Ziderman, A. 1990. Investment in general training: the role of information and labour mobility. The Economic Journal, 100, 1147–1158.

Lene, A. 2002. Enterprise Related Training and Poaching Externalities. Paper Presented at the 14th EALE conference, September 2002, Paris.

Leuven, E. 2005 The economics of private sector training: A survey of the literature. Journal of Economic Surveys, 19 (1), 91–111.

Lynch, L. M. and Black, S. E. 1998. Beyond the Incidence of Employer-Provided Training. Industrial and Labour Relations Review, 52 (1), 64–81.

Majumdar, S. 2006. Market Conditions and Worker Training: How Does it Affect and Whom? Labour Economics, 14 (1), 1–23.

Mayerhofer, P. 2007. Stadtwirtschaft im Umbruch – Wiens Beschäftigungssystem unter neuen Rahmenbedingungen. Wirtschaft und Gesellschaft, 33 (1), 1–11.

Moen, E. R. and Rosen, A. 2004. Does Poaching Distort Training? Review of Economic Studies, 71 (4), 1143–1162.

Mühlemann, S. et al. 2007. An empirical analysis of the decision to train Apprentices. Labour, 21 (3), 419–441.

Porter, M. E. 2003. The Economic Performance of Regions. Regional Science, 37 (6–7), 549–578.

Saxenian, A. L. 1996. Regional advantage: Culture and competition in Silicon Valley and Route 128. Second edition. Cambridge and London: Harvard University Press.

Schöberl, M. 2004. Das Datenverarbeitungssystem der WIFO-Arbeitsmarktanalyse auf der Basis von Individualdaten (WABI). WIFO, Vienna.

Schüler, A. and Meyer, J. 2006. Die Entscheidung über Betriebliche Weiterbildungsivestitionen: eine empirische Analyse mit dem Mannheimer Innovationspanel. ZEW Discussion Paper 06-089.