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General Training by Firms, Apprentice Contracts, and Public Policy Author info | Abstract | Publisher info | Download info | Related research | Statistics James Malcomson
James W. Maw
Barry McCormick
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Workers will not pay for general on-the-job training if contracts are not enforceable. Firms may if there are mobility frictions. Private information about worker productivities, however, prevents workers who quit receiving their marginal products elsewhere. Their new employers then receive external benefits from their training. In this paper, training firms increase profits by offering apprenticeships which commit firms to high wages for those trainees retained on completion. At these high wages, only good workers are retained. This signals their productivity and reduces the external benefits if they subsequently quit. Regulation of apprenticeship length (a historically important feature) enhances efficiency. Appropriate subsidies enhance it further. This paper is now published at the reference given below, however the unpublished appendices are available to be downloaded.
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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number
086.
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Date of creation: 2002Date of revision:
Handle: RePEc:oxf:wpaper:086Contact details of provider: Postal: Manor Rd. Building, Oxford, OX1 3UQ Email: Web page: http://www.economics.ox.ac.uk/ More information through EDIRC
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Keywords: contract enforceability apprenticeships regulation Other versions of this item:
Article Malcomson, James M. & Maw, James W. & McCormick, Barry, 2003.
"General training by firms, apprentice contracts, and public policy ,"
European Economic Review ,
Elsevier, vol. 47(2), pages 197-227, April.
[Downloadable!] (restricted) Paper Malcomson, James M. & Maw, James W. & McCormick, Barry, 2002.
"General Training by Firms, Apprentice Contracts, and Public Policy ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo GmbH.
[Downloadable!] Malcomson, J.M. & Maw, J.W. & McCormick, B., 2000.
"General Training by Firms, Apprentice Contracts, and Public Policy ,"
Discussion Paper Series In Economics And Econometrics
0021, Economics Division, School of Social Sciences, University of Southampton.
Find related papers by JEL classification: J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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Other versions: Katz, Eliakim & Ziderman, Adrian, 1990.
"Investment in General Training: The Role of Information and Labour Mobility ,"
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Acemoglu, Daron & Pischke, Jörn-Steffen, 1998.
"The Structure of Wages and Investment in General Training ,"
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"The Economics of Youth Training in the United States ,"
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Daron Acemoglu & Jörn-Steffen Pischke, 1998.
"Why Do Firms Train? Theory And Evidence ,"
The Quarterly Journal of Economics ,
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Other versions:
Acemoglu, Daron & Pischke, Jörn-Steffen, 1996.
"Why do Firms Train? Theory and Evidence ,"
CEPR Discussion Papers
1460, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Acemoglu, D. & Pischki, J.S., 1996.
"Why Do Firms Train? Theory and Evidence ,"
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96-7, Massachusetts Institute of Technology (MIT), Department of Economics.
Daron Acemoglu & Jorn-Steffen Pischke, 1996.
"Why Do Firms Train? Theory and Evidence ,"
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5605, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Acemoglu, Daron, 1997.
"Training and Innovation in an Imperfect Labour Market ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 64(3), pages 445-64, July.
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Kessler, Anke S. & Luelfesmann, Christoph, 2002.
"The Theory of Human Capital Revisited: On the Interaction of General and Specific Investments ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo GmbH.
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Other versions:
Kessler, Anke & Lülfesmann, Christoph, 2000.
"The Theory of Human Capital Revisited: On the Interaction of General and Specific Investments ,"
CEPR Discussion Papers
2533, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Christoph Luelfesmann, 2000.
"The Theory of Human Capital Revisited: On the Interaction of General and Specific Investments ,"
Econometric Society World Congress 2000 Contributed Papers
0659, Econometric Society.
[Downloadable!] Anke S. Kessler & Christoph Lülfesmann, 2006.
"The Theory of Human Capital Revisited: on the Interaction of General and Specific Investments ,"
Economic Journal ,
Royal Economic Society, vol. 116(514), pages 903-923, October.
[Downloadable!] (restricted) Cihan Bilginsoy, 2005.
"Delivering Skills: Apprenticeship Program Sponsorship and Transition from Training ,"
Working Paper Series, Department of Economics, University of Utah
2005_01, University of Utah, Department of Economics.
Christian Dustmann & Uta Schönberg, 2007.
"Apprenticeship Training and Commitment to Training Provision ,"
Economics of Education Working Paper Series
0032, University of Zurich, Institute for Strategy and Business Economics (ISU).
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V. Bhaskar & Steinar Holden, 2002.
"Wage Differentiation via Subsidised General Training ,"
Economics Discussion Papers
549, University of Essex, Department of Economics.
[Downloadable!]
Other versions: Booth, Alison L. & Francesconi, Marco & Zoega, Gylfi, 2002.
"Oligopsony, Institutions and the Efficiency of General Training ,"
IZA Discussion Papers
618, Institute for the Study of Labor (IZA).
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Pablo Casas-Arce, 2004.
"Firm Provision of General Training and Specific Human Capital Acquisition ,"
Economics Series Working Papers
198, University of Oxford, Department of Economics.
[Downloadable!]
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