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This paper examines whether the increased openness and technological innovation in East Asia have contributed to an increased demand for skills in the region. The author explores a unique firm level data set across eight countries in Asia and the Pacific region. The results strongly support the idea that greater openness and technological innovation have increased the demand for skills, especially in middle-income countries. In particular, while the presence in international markets has been skill enhancing for most middle-income countries, this is not the case for manufacturing firms operating in China and in low-income countries. The author interprets this to support the premise that if international integration in the region continues to intensify and technology continues to be skilled biased, policies aimed at mitigating the skills shortages should produce continual and persistent increase in skills.

E-Business --- Emerging Markets --- Employee --- Employment --- Firm level --- Foreign ownership --- Income inequality --- Industry --- International markets --- Job vacancies --- Labor Markets --- Labor markets --- Labor Policies --- Labor supply --- Occupational classification --- Private Sector Development --- Skill shortages --- Skill upgrading --- Skilled labor --- Skilled workers --- Social Protections and Labor --- Technology Industry --- Total employment --- Unskilled labor --- Unskilled workers --- Wage premium --- Wage premiums --- Worker

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This paper analyzes the link between firm size and investment in job training by employers. Using a large firm level data set across 99 developing countries, the analysis shows that a strong and positive correlation in investment in job training and firm size is a robust statistical finding both within and across countries with very different institutions and level of development. However, the findings do not support the view that this difference is mostly driven by market imperfections disproportionally affecting small and medium enterprises. Rather, the evidence is supportive of small and medium enterprises having a smaller expected return from the investment in job training than larger firms. Therefore, the findings call for caution when designing pro-small and medium enterprises policies fostering investment in on-the-job training.

Access to capital --- Access to information --- Acquisition of skills --- Educated workers --- Education --- Education For All --- Education technology --- Educational attainment --- Finance and Financial Sector Development --- Job training --- Labor Markets --- Labor Policies --- Learning --- Level of education --- Microfinance --- Performance indicators --- Primary Education --- Schooling --- Skilled workers --- Skilled workforce --- Skills development --- Social Protections and Labor --- Teaching --- Technological innovation --- Technological innovations --- Training schemes --- Vocational education --- Vocational training