We use European Union Labour Force Survey data for the period 2005-2018 to investigate the cyclicality of training in Europe. Consistent with the view that firms use recessions as times to update skills, we find that training participation is moderately countercyclical for the employed. Within...

Using a representative sample of European firms, we study whether financing constraints affect employers' investments in employee training and physical capital differently. We measure financing constraints with an index that combines survey and balance sheet data. We instrument this index with...