Imperfect Information and Training Quality
AbstractThis paper develops a theoretical model in which the level of training provided by a firm is not observed by workers. It is therefore not possible to have training wages completely contingent upon the level of training provided. Training wages will be too high. This, in turn, prevents firms from recouping the full benefits from training and leads to underinvestment. The more general the training is, the more severe this underinvestment problem.
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 002.
Date of creation: 2003
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:
- NEP-ALL-2003-11-30 (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.:
- Schlicht, Ekkehart, 1996.
"Endogenous on-the-job training with moral hazard,"
Elsevier, vol. 3(1), pages 81-92, August.
- Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-82, June.
- John M. Barron & Mark C. Berger & Dan A. Black, 1997. "On-the-Job Training," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ojt, October.
- Thomas J. Kane & Dietmar Harhoff, 1997.
"Is the German apprenticeship system a panacea for the U.S. labor market?,"
Journal of Population Economics,
Springer, vol. 10(2), pages 171-196.
- Harhoff, Dietmar & Kane, Thomas J., 1995. "Is the German apprenticeship system a panacea for the US labour market?," ZEW Discussion Papers 95-19, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Harhoff, Dietmar & Kane, Thomas J, 1996. "Is the German Apprenticeship System a Panacea for the US Labour Market?," CEPR Discussion Papers 1311, C.E.P.R. Discussion Papers.
- 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.
- Borghans, Lex & Smits, Wendy, 1997. "Succesfactoren in het leerlingwezen," Open Access publications from Maastricht University urn:nbn:nl:ui:27-13137, Maastricht University.
- Steedman, Hilary, 1993. "The Economics of Youth Training in Germany," Economic Journal, Royal Economic Society, vol. 103(420), pages 1279-91, September.
- Chang, Chun & Wang, Yijiang, 1996. "Human Capital Investment under Asymmetric Information: The Pigovian Conjecture Revisited," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 505-19, July.
- Katz, Eliakim & Ziderman, Adrian, 1990. "Investment in General Training: The Role of Information and Labour Mobility," Economic Journal, Royal Economic Society, vol. 100(403), pages 1147-58, December.
- Barron, John M & Berger, Mark C & Black, Dan A, 1997. "How Well Do We Measure Training?," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 507-28, July.
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.