Firm-Sponsored General Training in a Frictionless Labor Market
AbstractIn this paper I show that, contrary to Becker's (1962) Human Capital theory and consistent with the evidence, in a frictionless labor market model firms pay for general training, while the worker receives the full return on general training, and the worker and the firm share the returns on specific investements. Furthermore, the presence of general training helps to alliviate the firms incentives to underinvest in specific training and that delayed general training helps to alleviate the worker´s incentives to underinvestment in specific training because general and specific training are strategic complements. I also show that these results are robust to long-term contracts and that several institutional arrangements that help to alleviate the underinvestment problem in specific training may also help to alleviate the underinvestment problem in general training.
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 Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines in its series ILADES-Georgetown University Working Papers with number inv134.
Date of creation:
Date of revision:
Other versions of this item:
- Felipe Balmaceda, 2002. "Firm Sponsored General Training in a Frictionless Labor Market," Documentos de Trabajo 137, Centro de Economía Aplicada, Universidad de Chile.
- NEP-ALL-2002-12-02 (All new papers)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Felipe Balmaceda & Paola Sevilla, . "Invirtiendo en Entrenamiento General: El Programa de Formación Dual," ILADES-Georgetown University Working Papers inv136, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
- Felipe Balmaceda, 2008. "Firm-Provided Training and Labor Market Policies," Documentos de Trabajo 252, Centro de Economía Aplicada, Universidad de Chile.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marcela Perticara).
If references are entirely missing, you can add them using this form.