Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

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Friday, August 5, 2011

Barriers to Entry, Deregulation and Workplace Training

Posted by D. Daniel Sokol

Andrea Bassanini (OECD) and Giorgio Brunello (University of Padova) discuss Barriers to Entry, Deregulation and Workplace Training.

ABSTRACT: We study the impact of regulatory barriers to entry on workplace training. We develop a model of training in imperfectly competitive product and labour markets. The model indicates that there are two contrasting effects of deregulation on training. As stressed in the literature, with a given number of firms, deregulation reduces the size of rents per unit of output that firms can reap by training their employees. Yet, the number of firms increases following deregulation, thereby raising output and profit gains from training and improving investment incentives. The latter effect prevails. In line with the predictions of the theoretical model, we find that the substantial deregulation in the 1990s of heavily regulated European industries (energy, transport and communication) increased training incidence.

http://lawprofessors.typepad.com/antitrustprof_blog/2011/08/barriers-to-entry-deregulation-and-workplace-training.html

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Comments

Wow, This is the great news, You develop a model of training in imperfectly competitive product and labour markets. The model indicates that there are two contrasting effects of deregulation on training. I think, You are doing great work. Thanks for nice post.
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Posted by: online business courses | Aug 28, 2011 10:23:50 PM

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