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Sharing the Cost of Investment in General Training

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Author Info
Chiang, Shih-Chen
Chiang, Shin-Hwan
Abstract

It is known that risk-neutral workers bear the full costs of general training. This result is contingent upon the assumption that all firms have complete information about workers' postinvestment productivities. The authors show that, if information is not perfect, the better-informed employer will share the costs of and returns on investment in general training, contrary to Gary Becker's claim. Copyright 1990 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

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Publisher Info
Article provided by Blackwell Publishing in its journal Australian Economic Papers.

Volume (Year): 29 (1990)
Issue (Month): 55 (December)
Pages: 266-72
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Handle: RePEc:bla:ausecp:v:29:y:1990:i:55:p:266-72

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X

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  1. Ericson, Thomas, 2004. "Personnel training: a theoretical and empirical review," Working Paper Series 2005:1, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  2. Ericson, Thomas, 2004. "The effects of wage compression on training: Swedish empirical evidence," Working Paper Series 2004:15, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  3. Christoph Luelfesmann, 2000. "The Theory of Human Capital Revisited: On the Interaction of General and Specific Investments," Econometric Society World Congress 2000 Contributed Papers 0659, Econometric Society. [Downloadable!]
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This page was last updated on 2008-11-27.


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