Does poaching distort training?
Abstract
We analyse the efficiency of the labour market outcome in a competitive search equilibrium model with endogenous turnover and endogenous general human capital formation. We show that search frictions do not distort training decisions if firms and their employees are able to coordinate efficiently, for instance, by using long-term contracts. In the absence of efficient coordination devices there is too much turnover and too little investments in general training. Nonetheless, the number of training firms and the amount of training provided are constrained optimal, and training subsidies therefore reduce welfare.Download Info
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Paper provided by Swedish Institute for Social Research in its series Working Paper Series with number 4/2002.Length: 39 pages
Date of creation: 28 Jun 2002
Date of revision:
Handle: RePEc:hhs:sofiwp:2002_004
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Postal: SOFI, Stockholm University, SE-10691 Stockholm, Sweden
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Related research
Keywords: Matching; Training; Poaching; Efficiency;Other versions of this item:
- Espen R. Moen & Asa Rosén, 2004. "Does Poaching Distort Training?," Review of Economic Studies, Wiley Blackwell, vol. 71(4), pages 1143-1162, October.
- Moen, Espen R & Rosen, Asa, 2002. "Does Poaching Distort Training?," CEPR Discussion Papers 3468, C.E.P.R. Discussion Papers.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-12-12 (All new papers)
- NEP-LAB-2004-12-12 (Labour Economics)
References
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