Abstract
Continuous training for workers plays a fundamental role in enabling firms to keep up with technological advancements and the resulting changes in production and organisational processes. This is particularly relevant for craft firms, where training supports adaptation to shifts in the demand for products and services while preserving the quality of products and services. Yet, compared to larger firms, craft firms tend to invest less in training (Kotey & Folker, 2007; Storey, 2004), often underestimating its benefits and overestimating its cost (Barrett & Mayson, 2007; Storey, 2004; Storey & Westhead, 1997). A key policy question is which levers are most effective in encouraging these firms to engage in training activities.
Since micro-enterprises and craft businesses typically operate in narrow and competitive local markets, where the innovation capacity is generally limited, the literature shows how they heavily rely on their peers when making important business decisions (McPherson, 1996; Nichter & Goldmark, 2009; Maté-Sánchez Val et al., 2018; Tomelleri & Billé, 2025), and this may also apply to investments in training.
In this vein, to test the extent to which craft firms' decisions to participate in training depend on the training activities undertaken by their peers, we run an information treatment experiment. In collaboration with the local Employment Agency (EA) of Trento, located in a highly productive province in Northern Italy, we randomly provide craft firms with accurate information about the training activities undertaken by their peers to evaluate the effect on training decisions. The study contributes to the literature on training behavioural nudges by examining low-cost interventions in the training markets.