An Explanation of International Differences in Education and Workplace Training
AbstractWe develop a simple search equilibrium model of workplace training and education based on two features. First, investment in education improves job-related learning skills and reduces training costs burdened by firms. Second, firms with vacant skilled job slots can choose between recruitment from the market and training. Compared to Germany and Japan, the US has both a higher inflow rate into unemployment and a higher efficiency of the matching process. While the combined effort of these differences on the share of educated labor is ambiguous, the effect on the percentage of firms undertaking workplace training is to unambiguously reduce it.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 114.
Length: 19 pages
Date of creation: Feb 2000
Date of revision:
Publication status: published in: European Economic Review, 2001, 45 (2), 307-322
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Other versions of this item:
- Brunello, Giorgio & Medio, Alfredo, 2001. "An explanation of international differences in education and workplace training," European Economic Review, Elsevier, vol. 45(2), pages 307-322, February.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-02-28 (All new papers)
- NEP-EDU-2000-02-14 (Education)
- NEP-LAB-2000-02-28 (Labour Economics)
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