AbstractThis paper introduces two complementary models of firm-specific training: an informational model and a productivity-enhancement model. In both models, market provision of firm-specific training is inefficient. However, the nature of the inefficiency depends on the balance between the two key components of training, namely productivity enhancement and employee evaluation. In the informal model, training results in a proportionate increase in productivity enhancement and employee evaluation, and training is underprovided by the market. In the productivity-enhancement model, training results in an increase in productivity enhancement but no change in employee evaluation, and training is overprovided by the market. In both models, turnover is inefficiently low.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Theoretical Economics Paper Series with number /2004/473.
Date of creation: Apr 2004
Date of revision:
Contact details of provider:
Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp
Firm-specific training; productivity enhancement; employee evaluation; firm-specific human capital.;
Other versions of this item:
- Christopher Harris & Leonardo Felli, 2004. "Firm-Specific Training," 2004 Meeting Papers 62, Society for Economic Dynamics.
- Leonardo Felli & Christopher Harris, 2005. "Firm-Specific Training," Levine's Bibliography 122247000000000839, UCLA Department of Economics.
- Felli, Leonardo & Harris, Christopher J, 2004. "Firm-Specific Training," CEPR Discussion Papers 4580, C.E.P.R. Discussion Papers.
- Leonardo Felli & Christopher Harris, 2004. "Firm-Specific Training," Economics Working Papers 0038, Institute for Advanced Study, School of Social Science.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-01-02 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pissarides, Christopher A, 1994.
"Search Unemployment with On-the-Job Search,"
Review of Economic Studies,
Wiley Blackwell, vol. 61(3), pages 457-75, July.
- Postel-Vinay, Fabien & Robin, Jean-Marc, 2002.
"Equilibrium Wage Dispersion with Worker and Employer Heterogeneity,"
CEPR Discussion Papers
3548, C.E.P.R. Discussion Papers.
- Fabien Postel-Vinay & Jean-Marc Robin, 2002. "Equilibrium Wage Dispersion with Worker and Employer Heterogeneity," Econometrica, Econometric Society, vol. 70(6), pages 2295-2350, November.
- Postel-Vinay, F. & Robin, J.-M., 2002. "Equilibrium wage dispersion with worker and employer heterogeneity," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
- Patrick Bolton & Christopher Harris, 1999. "Strategic Experimentation," Econometrica, Econometric Society, vol. 67(2), pages 349-374, March.
- James Heckman, 1993. "Assessing Clinton's Program on Job Training, Workfare, and Education in the Workplace," NBER Working Papers 4428, National Bureau of Economic Research, Inc.
- Acemoglu, D. & Pischki, J.S., 1996.
"Why Do Firms Train? Theory and Evidence,"
96-7, Massachusetts Institute of Technology (MIT), Department of Economics.
- Daron Acemoglu & Jorn-Steffen Pischke, 1996. "Why Do Firms Train? Theory and Evidence," NBER Working Papers 5605, National Bureau of Economic Research, Inc.
- Acemoglu, Daron & Pischke, Jörn-Steffen, 1996. "Why do Firms Train? Theory and Evidence," CEPR Discussion Papers 1460, C.E.P.R. Discussion Papers.
- Dirk Bergemann & Juuso Valimaki, 1996.
"Learning and Strategic Pricing,"
Cowles Foundation Discussion Papers
1113, Cowles Foundation for Research in Economics, Yale University.
- Topel, Robert H & Ward, Michael P, 1992.
"Job Mobility and the Careers of Young Men,"
The Quarterly Journal of Economics,
MIT Press, vol. 107(2), pages 439-79, May.
- Prendergast, Canice, 1993. "The Role of Promotion in Inducing Specific Human Capital Acquisition," The Quarterly Journal of Economics, MIT Press, vol. 108(2), pages 523-34, May.
- Felli, Leonardo & Harris, Christopher, 1996. "Learning, Wage Dynamics, and Firm-Specific Human Capital," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 838-68, August.
- Stevens, Margaret, 1994. "A Theoretical Model of On-the-Job Training with Imperfect Competition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 537-62, October.
- Jovanovic, Boyan, 1979.
"Job Matching and the Theory of Turnover,"
Journal of Political Economy,
University of Chicago Press, vol. 87(5), pages 972-90, October.
- repec:ner:sciepo:info:hdl:2441/c8dmi8nm4pdjkuc9g8grh35j2 is not listed on IDEAS
- Gueorgui Kambourov & Iourii Manovskii, 2001.
"Rising Occupational and Industry Mobility in the United States:1968-1993,"
PIER Working Paper Archive
04-012, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 05 Jul 2004.
- Kambourov, Gueorgui & Manovskii, Iourii, 2004. "Rising Occupational and Industry Mobility in the United States: 1968-1993," IZA Discussion Papers 1110, Institute for the Study of Labor (IZA).
- Alfred Garloff & Anja Kuckulenz, 2006. "Training, Mobility, and Wages: Specific Versus General Human Capital," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(1), pages 55-81, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.