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Sharing the Cost of Investment in General Training

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  • 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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Bibliographic Info

Article provided by Wiley Blackwell 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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Cited by:
  1. 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.
  2. Ericson, Thomas, 2004. "Personnel training: a theoretical and empirical review," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2005:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  3. Ericson, Thomas, 2004. "The effects of wage compression on training: Swedish empirical evidence," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2004:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  4. Alexandre Léné, 2005. "Détournements de main-d'œuvre et externalités de la formation dans un modèle de concurrence imparfaite," Post-Print halshs-00150687, HAL.

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