Abstract

This project explores the factors that determine firms’ investment in training during crisis and times of transition. Recent economic downturns go hand in hand with transformative recessions that change industries, technologies and requirements on the labour market. In order to cope with such processes, the further development of qualifications and competencies is key. Financial constraints is cited as an important impediment to firms’ further training investments. The project uses two shocks: i) the Covid pandemic and ii) the energy crisis as a shock towards (green) transformation. It investigates the role of financial constraints and economic uncertainty on investment in training. The project work is carried out in cooperation with the European Investment Bank based on a Europe-wide company data set.