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Enterprise-related training and poaching externalities

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Author Info
Alexandre Léné () (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS : UMR8019 - Université des Sciences et Technologies de Lille - Lille I)
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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Paper provided by HAL in its series Post-Print with number halshs-00150509_v1.

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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_v1

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Keywords: training ; skills; poaching ; labour;

References listed on IDEAS
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  1. Lindbeck, Assar & Snower, Dennis J, 2000. "Multitask Learning and the Reorganization of Work: From Tayloristic to Holistic Organization," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 353-76, July. [Downloadable!] (restricted)
    Other versions:
  2. Booth, Alison L & Chatterji, Monojit, 1998. "Unions and Efficient Training," Economic Journal, Royal Economic Society, vol. 108(447), pages 328-43, March. [Downloadable!] (restricted)
  3. Booth, Alison L & Satchell, Stephen E, 1994. "Apprenticeships and Job Tenure," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 676-95, October. [Downloadable!] (restricted)
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  5. McLaughlin, Kenneth J, 1994. "Rent Sharing in an Equilibrium Model of Matching and Turnover," Journal of Labor Economics, University of Chicago Press, vol. 12(4), pages 499-523, October. [Downloadable!] (restricted)
  6. Hildreth, Andrew K G & Oswald, Andrew J, 1997. "Rent-Sharing and Wages: Evidence from Company and Establishment Panels," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 318-37, April. [Downloadable!] (restricted)
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  7. 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. [Downloadable!] (restricted)
  8. 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. [Downloadable!] (restricted)
  9. 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. [Downloadable!]
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  11. 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. [Downloadable!] (restricted)
  12. 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.).
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  15. 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. [Downloadable!] (restricted)
  16. Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory And Evidence," The Quarterly Journal of Economics, MIT Press, vol. 113(1), pages 78-118, February. [Downloadable!] (restricted)
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  17. Heckman, James & Scheinkman, Jose, 1987. "The Importance of Bundling in a Gorman-Lancaster Model of Earnings," Review of Economic Studies, Blackwell Publishing, vol. 54(2), pages 243-55, April. [Downloadable!] (restricted)
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