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Firm Specific Training, Layoffs, and Unreliable Workers

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  • Cothren, Richard

Abstract

This paper determines the optimal level of firm-specific training and the optimal level of layoffs when some workers are unreliable in that they may receive and accept offers from outside the firm; more specifically, the paper determines the evolution of firm-specific training and layoffs as a worker acquires a reputation for reliability with his employer. The paper shows, for example, that layoffs may be higher or lower than the level implied by the condition that a worker's value of leisure equal the value of his contribution to output. Copyright 1991 by Oxford University Press.

Suggested Citation

  • Cothren, Richard, 1991. "Firm Specific Training, Layoffs, and Unreliable Workers," Economic Inquiry, Western Economic Association International, vol. 29(1), pages 166-172, January.
    • Handle: RePEc:oup:ecinqu:v:29:y:1991:i:1:p:166-72
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