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Efficiency of skill training for acquiring sector-specific skills with search frictions

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  • Keisuke Kawata

    ()
    (Graduate School of Economics, Osaka University)

Abstract

This paper develops a simple search model in which sector-specific trainings are endogenously determined with or without a negotiation between a worker and an employer, and characterizes the allocation of two types of training. If a worker and an employer can negotiate over the amount of skill training, the training hours to acquire a skill specific to this employer's sector may be longer or shorter in the decentralized allocation than in the socially efficient allocation. Meanwhile, if they cannot negotiate, the training hours are definitely longer in the decentralized allocation than in the socially efficient allocation.

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File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/1121.pdf
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Bibliographic Info

Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 11-21.

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Length: 10 pages
Date of creation: May 2011
Date of revision:
Handle: RePEc:osk:wpaper:1121

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Web page: http://www.econ.osaka-u.ac.jp/
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Keywords: Excess entry; sector-specific skills; job search; wage bargaining;

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