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Do labour hoarding practices stimulate training investments? Evidence from the Italian Great Recession.
- Source :
-
International Journal of Manpower . 2022, Vol. 43 Issue 6, p1449-1468. 20p. - Publication Year :
- 2022
-
Abstract
- Purpose: This paper investigates the relationship between labour hoarding practices and training investments during severe economic downturns focusing on the case of Italy during the Great Recession. Design/methodology/approach: Data come from the 2010 Italian wave of Continuing Vocational Training Survey (CVTS). Econometric estimates plug a proxy of labour hoarding into the probability function that firms provide either off-the-job or on-the-job training. A bivariate selectivity probit model is also used for robustness sake. Findings: Results show that labour hoarding should not be considered as an enhancer of training investments when considered as a standing-alone practice in presence of severe and deep economic downturn. However, labour hoarding does not penalize off-the-job training investments if it occurs in an innovative firm or in a firm that perceive specific skill requirements in the workforce during the recessionary period. Originality/value: The paper contributes to the debate on the role of labour hoarding during severe recessions by showing that it cannot be functional to re-oriented firms' investments aimed at upskilling their workforce. It is only compatible with new training courses that accompany the workforce across a technological transition. Policy implications deals with the suitability of job retention schemes or state-financed furlough during recessions, as occurred during the coronavirus disease 2019 (COVID-19) pandemic. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 01437720
- Volume :
- 43
- Issue :
- 6
- Database :
- Academic Search Index
- Journal :
- International Journal of Manpower
- Publication Type :
- Academic Journal
- Accession number :
- 158603550
- Full Text :
- https://doi.org/10.1108/IJM-08-2021-0507