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Do Quits Cause Under-Training?

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Author Info
Booth, Alison L
Zoega, Gylfi

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Abstract

A recent finding in the training literature is that there will be underinvestment in skills if there is a positive quit rate, training is at least partially transferable, and there is imperfect competition in the labor market. The authors explore the conditions under which this underinvestment result might be reversed. In economies characterized by uncertainty about future productivity, they show that a higher quit rate may increase the number of workers trained by making firms wait less for information about future productivity before training new workers. At low quit rates, this offsets all of the underinvestment effect. Copyright 1999 by Royal Economic Society.

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Publisher Info
Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 51 (1999)
Issue (Month): 2 (April)
Pages: 374-86
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Handle: RePEc:oup:oxecpp:v:51:y:1999:i:2:p:374-86

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  1. Arulampalam, Wiji & Booth, Alison L & Bryan, Mark L, 2004. "Are There Asymmetries in the Effects of Training on the Conditional Male Wage Distribution?," CEPR Discussion Papers 4289, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Booth, Alison L & Zoega, Gylfi, 2002. "If You're so Smart, Why Aren't You Rich? Wage Inequality with Heterogenous Workers?," CEPR Discussion Papers 3190, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. Booth, Alison L & Francesconi, Marco & Zoega, Gylfi, 1999. "Training, Rent-Sharing and Unions," CEPR Discussion Papers 2200, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  4. Jens Suedekum, 2003. "Subsidizing Education in the Economic Periphery: Another Pitfall of Regional Policies?," cege – Center for European, Governance and Economic Development Research Discussion Papers 17, cege – Center for European, Governance and Economic Development Research, University of Goettingen (Germany).. [Downloadable!]
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  5. Lazear, Edward P., 2003. "Firm-Specific Human Capital: A Skill-Weights Approach," IZA Discussion Papers 813, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Kuckulenz, Anja, 2006. "Wage and Productivity Effect of Continuing Training in Germany: A Sectoral Analysis," ZEW Discussion Papers 06-25, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  7. Anja Kuckulenz, 2006. "Wage and Productivity Effect of Continuing Training in Germany : A Sectoral Analysis," Working Papers of the Research Group Heterogenous Labor 06-06, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim. [Downloadable!]
  8. Booth, Alison L & Zoega, Gylfi, 2000. "Why Do Firms Invest in General Training? 'Good' Firms and 'Bad' Firms as a Source of Monopsony Power," CEPR Discussion Papers 2536, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  9. Andrea Bassanini & Alison Booth & Giorgio Brunello & Maria De Paola & Edwin Leuven, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA). [Downloadable!]
  10. repec:ese:iserwp: is not listed on IDEAS
  11. Alison Booth & Pamela Katic, 2008. "Men at Work in a Land Down-under," CEPR Discussion Papers 586, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
  12. Booth, Alison L. & Bryan, Mark L., 2002. "Who Pays for General Training? New Evidence for British Men and Women," IZA Discussion Papers 486, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2002. "Work-Related Training and the New National Minimum Wage in Britain," IZA Discussion Papers 595, Institute for the Study of Labor (IZA). [Downloadable!]
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