Firm Size and Work-Related Training: New Evidence on Incidence, Intensity, and Training Type from Australia

This study examines the relationship between firm size and structured work-related training by analyzing data from the 2001 installment of the Australian Bureau of Statistics’ Survey of Education and Training. The results show a positive correlation between the probability of training and firm size for both male and female workers. A similar positive correlation between the intensity of training and firm size is also evident. Although the incidence of training is roughly comparable for male and female workers, males tend to train significantly more hours than their female counterparts. The findings also indicate that much less training occurs in firms with fewer than 10 workers, especially in health and safety, management and professional, and technical and paraprofessional training. Such results suggest that research on the size-training effect using firm- or establishment-level data, which generally focus only on firms with 20 or more employees, cannot detect an important source of the potential training deficit.