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Information, Employer Size, Training, and Wage Growth

Author

Listed:
  • Alphonse G. Holtmann

    (University of Miami)

  • Todd L. Idson

    (Columbia University)

Abstract

We posit that larger employers possess greater information than smaller employers about the effects of on-the-job training (OJT) investments on the productivity of their workers. As a result, larger employers pay a greater percentage of OJT costs, and OJT is effectively more firm-specific at larger firms. Supporting our model, we find: (1) the positive effect of productivity growth on wage growth is smaller in larger plants; (2) the adverse effect of minimum wage on wage growth is smaller in larger plants; and (3) the negative effect of initial OJT investments on starting wages is smaller in larger plants.

Suggested Citation

  • Alphonse G. Holtmann & Todd L. Idson, 1995. "Information, Employer Size, Training, and Wage Growth," Eastern Economic Journal, Eastern Economic Association, vol. 21(2), pages 187-196, Spring.
  • Handle: RePEc:eej:eeconj:v:21:y:1995:i:2:p:187-196
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume21/V21N2P187_196.pdf
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    Citations

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    Cited by:

    1. Todd Idson, 2000. "Employer Size Effects in Russia," William Davidson Institute Working Papers Series 300, William Davidson Institute at the University of Michigan.
    2. repec:eee:labchp:v:3:y:1999:i:pb:p:2165-2214 is not listed on IDEAS

    More about this item

    Keywords

    Firm; Firms; On the Job Training; Pay; Productivity; Training; Wage;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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