Firm-Sponsored General Training
AbstractThis article analyzes firm and worker's incentives to invest in general and specific training when these are separable in the production technology and wages are determined by the outside-option principle. It is shown that firms pay for general training, while workers receive the full return on it, and firms and workers share both the costs and benefits of specific training. The case of delayed general training is also studied. When general training is delayed, it is shown that the strategic complementarity between specific and general training increases the worker's incentives to invest in specific training.
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Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Labor Economics.
Volume (Year): 23 (2005)
Issue (Month): 1 (January)
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Web page: http://www.journals.uchicago.edu/JOLE/
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- Christos Bilanakos, 2011.
"Career Concerns and Firm – Sponsored General Training,"
University of Cyprus Working Papers in Economics
07-2011, University of Cyprus Department of Economics.
- Bilanakos, Christos, 2013. "Career concerns and firm – sponsored general training," Research in Economics, Elsevier, vol. 67(2), pages 117-132.
- Prasad, Suraj & Tran, Hien, 2013. "Work practices, incentives for skills, and training," Labour Economics, Elsevier, vol. 23(C), pages 66-76.
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- Felipe Balmaceda, 2008. "Firm-Provided Training and Labor Market Policies," Documentos de Trabajo 252, Centro de Economía Aplicada, Universidad de Chile.
- Tang, Heiwai, 2012.
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- Heiwai Tang, 2010. "Labor Market Institutions, Firm-specific Skills, and Trade Patterns," Development Working Papers 301, Centro Studi Luca d\'Agliano, University of Milano.
- Heiwai Tang, 2010. "Labor Market Institutions, Firm-specific Skills, and Trade Patterns," Discussion Papers Series, Department of Economics, Tufts University 0755, Department of Economics, Tufts University.
- David Neumark & Hans P. Johnson & Marisol Cuellar Mejia, 2011. "Future Skill Shortages in the U.S. Economy?," NBER Working Papers 17213, National Bureau of Economic Research, Inc.
- Pontus Rendahl, 2013. "Equilibrium Contracts and Firm-sponsored Training," Cambridge Working Papers in Economics 1336, Faculty of Economics, University of Cambridge.
- Felipe Balmaceda, 2006. "Task-Specific Training and Job Design," Documentos de Trabajo 223, Centro de Economía Aplicada, Universidad de Chile.
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