Evaluating the Impact of Power Outages on Firms' Training in Senegal
This paper evaluates whether power outages are related to the propensity of firms in Senegal to provide formal training to their employees. The relationship between these two variables is particularly interesting to analyse given that both power outages and training bear a wide range of implications on a firm’s performance. Results indicate that firms which are the most affected by electricity cuts tend to be the ones with the highest propensity of formal worker training. This suggesst to a certain extent that in order to remain in business and to overcome material defects, firms turn to human capital. More specifically, results illustrate that investing in training is only considered as a mitigation strategy in instances where electricity cuts leads to actual monetary losses. The disturbance of outages as measured by their frequency and duration are not directly affecting training investment decisions. In addition, it seems that firms which are able to cope with electricity insecurity by owning or sharing a generator are also the ones more likely to train their workforce. Finally, it is also attempted at identifying firms with better business practices in order to determine whether training.