In many developing countries the skill base is a cause of concern with respect to international competition. Firm-provided training is generally seen as an important tool for bridging the skills gap between labour force and private sector demand. Yet little is known about how successful such...

This paper contributes to the understanding of how small firms are organized and managed. We develop and test a simple empirical entrepreneur-worker matching model in small firms where individual skills play a central role. The model contemplates the existence of complementarities between...