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Enterprise-related training and poaching externalities

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  • Alexandre Léné

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    (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS : UMR8019 - Université des Sciences et Technologies de Lille - Lille I)

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    Abstract

    Labour poaching is a potential problem in work-linked training systems. Once trained, young people can be poached by rival firms, which threatened the training firm's investment. A distinction is made between two types of workforce poaching. It is shown that it may be rational for some firms to train young people, even if they then lose part of their workforce. However, this situation is not socially optimal: it does not exclude underinvestment or skilled labour shortages. This may justify government intervention. However, the introduction of subsidies can have perverse effects.

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    Bibliographic Info

    Paper provided by HAL in its series Post-Print with number halshs-00150509.

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    Date of creation: Sep 2002
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    Publication status: Published - Presented, 14th European Association of Labour Economists Conference, 2002, Université Paris 1 Panthéon-Sorbonne, France
    Handle: RePEc:hal:journl:halshs-00150509

    Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00150509/en/
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    Keywords: training ; skills; poaching ; labour;

    References

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    1. Stevens, M., 1999. "Should Firms be Required to Pay for Vocational Training?," Economics Papers 1999-w4, Economics Group, Nuffield College, University of Oxford.
    2. Heckman, James & Scheinkman, Jose, 1987. "The Importance of Bundling in a Gorman-Lancaster Model of Earnings," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 54(2), pages 243-55, April.
    3. Hilderth, A.K. & Oswald, A.J., 1993. "Rent-Sharing and Wages: Evidence form Company and Establishment Panels," Economics Series Working Papers 99154, University of Oxford, Department of Economics.
    4. Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory And Evidence," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 113(1), pages 78-118, February.
    5. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, 2nd ed," NBER Books, National Bureau of Economic Research, Inc, number beck75-1.
    6. Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 16(1), pages 142-71, January.
    7. 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.
    8. Rosen, Sherwin, 1987. "Some Economics of Teaching," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 5(4), pages 561-75, October.
    9. Picard, Pierre M., 2001. "Job additionality and deadweight spending in perfectly competitive industries: the case for optimal employment subsidies," Journal of Public Economics, Elsevier, vol. 79(3), pages 521-541, March.
    10. 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.
    11. Booth, Alison L & Satchell, Stephen E, 1994. "Apprenticeships and Job Tenure," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 676-95, October.
    12. Sattinger, Michael, 1979. "Differential Rents and the Distribution of Earnings," Oxford Economic Papers, Oxford University Press, vol. 31(1), pages 60-71, March.
    13. Daron Acemoglu & Joern-Steffen Pischke, 1999. "Certification of Training and Training Outcomes," Working papers 99-28, Massachusetts Institute of Technology (MIT), Department of Economics.
    14. Booth, Alison L & Chatterji, Monojit, 1998. "Unions and Efficient Training," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 108(447), pages 328-43, March.
    15. Kathryn L. Shaw, 1985. "Occupational change, employer change, and the transferability of skills," Working Paper Series / Economic Activity Section 55, Board of Governors of the Federal Reserve System (U.S.).
    16. McLaughlin, Kenneth J, 1994. "Rent Sharing in an Equilibrium Model of Matching and Turnover," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 12(4), pages 499-523, October.
    17. Feuer, M. & Glick, H. & Desai, A., 1987. "Is firm-sponsored education viable?," Journal of Economic Behavior & Organization, Elsevier, vol. 8(1), pages 121-136, March.
    18. Lindbeck, Assar & Snower, Dennis J., 1999. "Multi-Task Learning and the Reorganization of Work. From Tayloristic to Holistic Organization," IZA Discussion Papers 39, Institute for the Study of Labor (IZA).
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    Cited by:
    1. Francisca Bauer & Rudolf Hochholzer & Peter Huber, 2010. "Labour Turnover, Labour Market Density and In-house Training. Preliminary Results of the Vienna Employment and Skilling Monitor," WIFO Working Papers, WIFO 367, WIFO.

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