Occupation Specific or Generic Skills? Conflicting Interests of Firms and Apprentices
AbstractFirms and apprentices have conflicting interests with respect to the content of training programmes. On the basis of a model for the investment decision in occupation-specific and generic training, I will show that, in the case of imperfect competition, firms are not only unwilling to pay for generic training, they also want this component to be as low as possible because it decreases their expected returns to occupation-specific training. Therefore the generic component of the training will be below the social optimum. This underinvestment problem cannot always be solved by having the generic component fixed at the social optimum by an external training body. Fixing the generic component may negatively affect the level of occupation-specific training and decrease social welfare.
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 Maastricht : ROA, Research Centre for Education and the Labour Market in its series Research Memoranda with number 001.
Date of creation: 2001
Date of revision:
Contact details of provider:
Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm
education; training and the labour market;
Other versions of this item:
- Smits,W, 2002. "Occupation Specific or Generic Skills? Conflicting Interests of Firms and Apprentices," Research Memoranda 001, Maastricht : ROA, Research Centre for Education and the Labour Market.
- NEP-ALL-2002-12-17 (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.:
- Acemoglu, Daron & Pischke, Jörn-Steffen, 1998.
"The Structure of Wages and Investment in General Training,"
CEPR Discussion Papers
1833, C.E.P.R. Discussion Papers.
- Daron Acemoglu & Jorn-Steffen Pischke, 1999. "The Structure of Wages and Investment in General Training," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 539-572, June.
- Daron Acemoglu & Jorn-Steffen Pischke, 1998. "The Structure of Wages and Investment in General Training," NBER Working Papers 6357, National Bureau of Economic Research, Inc.
- Acemoglu, D. & Pischke, J.S., 1997. "The Structure of Wages and Investment in General Training," Working papers 97-24, Massachusetts Institute of Technology (MIT), Department of Economics.
- 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.
- Steedman, Hilary, 1993. "The Economics of Youth Training in Germany," Economic Journal, Royal Economic Society, vol. 103(420), pages 1279-91, September.
- Blechinger, Doris & Pfeiffer, Friedhelm, 1996. "Technological change and skill obsolescence: the case of German apprenticeship training," ZEW Discussion Papers 96-15, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- David Soskice, 1994. "Reconciling Markets and Institutions: The German Apprenticeship System," NBER Chapters, in: Training and the Private Sector, pages 25-60 National Bureau of Economic Research, Inc.
- Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 142-71, January.
- Askildsen, Jan Erik & Ireland, Norman J, 1993. "Human Capital, Property Rights, and Labour Managed Firms," Oxford Economic Papers, Oxford University Press, vol. 45(2), pages 229-42, April.
- Nicholas Oulton & Hilary Steedman, 1994.
"The British System of Youth Training: A Comparison with Germany,"
in: Training and the Private Sector, pages 61-76
National Bureau of Economic Research, Inc.
- Nicholas Oulton & Hilary Steedman, . "The British system of youth training: a comparison with Germany," NIESR Discussion Papers 10, National Institute of Economic and Social Research.
- Oulton, N. & Steedman, H., 1994. "The British system of youth training: a comparison with Germany," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
- Black, Dan A. & Loewenstein, Mark A., 1997.
"Dismissals and match-specific rents,"
Elsevier, vol. 4(4), pages 325-340, December.
- Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charles Bollen).
If references are entirely missing, you can add them using this form.