Why Do Firms Train? Theory And Evidence
This paper offers a theory of training whereby workers do not pay for the general training they receive. The superior information of the current employer regarding its employees' abilities relative to other firms creates ex post monopsony power, and encourages this employer to provide and pay for training, even if these skills are general. The model can lead to multiple equlibria. In one equilibrium quits are endogenously high, and as a result employers have limited monopsony power and provide little training, while in another equilibrium quits are low and training is high. Using microdata on German apprentices, we show that the predictions of our model receive some support from the data. © 2000 the President and Fellows of Harvard College and the Massachusetts Institute of Technology
Volume (Year): 113 (1998)
Issue (Month): 1 (February)
|Contact details of provider:|| Web page: http://mitpress.mit.edu/journals/|
|Order Information:||Web: http://mitpress.mit.edu/journal-home.tcl?issn=00335533|
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.:
- Entorf, Horst & Gollac, Michel & Kramarz, Francis, 1999.
"New Technologies, Wages, and Worker Selection,"
Journal of Labor Economics,
University of Chicago Press, vol. 17(3), pages 464-91, July.
- H, Entorf & Michel Gollac & Francis Kramarz, 1997. "New Technologies, Wages and Worker Selection," Working Papers 97-25, Centre de Recherche en Economie et Statistique.
- Entorf, Horst & Gollac, Michel & Kramarz, Francis, 1997. "New Technologies, Wages and Worker Selection," CEPR Discussion Papers 1761, C.E.P.R. Discussion Papers.
- Robert Gibbons & Lawrence Katz, 1989.
"Layoffs and Lemons,"
629, Princeton University, Department of Economics, Industrial Relations Section..
- Robert Gibbons & Lawrence Katz, 1989. "Layoffs and Lemons," NBER Working Papers 2968, National Bureau of Economic Research, Inc.
- Gibbons, Robert & Katz, Lawrence F., 1991. "Layoffs and Lemons," Scholarly Articles 3442782, Harvard University Department of Economics.
- Gibbons, R. & Katz, L.F., 1989. "Layoffs And Lemons," Working papers 531, Massachusetts Institute of Technology (MIT), Department of Economics.
- Topel, Robert H & Ward, Michael P, 1992.
"Job Mobility and the Careers of Young Men,"
The Quarterly Journal of Economics,
MIT Press, vol. 107(2), pages 439-79, May.
- Nicholas Oulton & Hilary Steedman, 1994. "The British System of Youth Training: A Comparison with Germany," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 61-76 National Bureau of Economic Research, Inc.
- Katharine G. Abraham & Susan N. Houseman, 1993. "Job Security in America: Lessons from Germany," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number kagsnh1993, April.
- Michael Waldman, 1983.
"Job Assignments, Signalling nad Efficiency,"
UCLA Economics Working Papers
286, UCLA Department of Economics.
- Dietmar Harhoff & Thomas J. Kane, 1993. "Financing Apprenticeship Training: Evidence from Germany," NBER Working Papers 4557, National Bureau of Economic Research, Inc.
- Acemoglu, Daron, 1997. "Training and Innovation in an Imperfect Labour Market," Review of Economic Studies, Wiley Blackwell, vol. 64(3), pages 445-64, July.
- repec:nsr:niesrd:10 is not listed on IDEAS
- Imbens, Guido & van der Klaauw, Wilbert, 1995.
"Evaluating the Cost of Conscription in The Netherlands,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 13(2), pages 207-15, April.
- Imbens, G. & Van Der Klaauw, W., 1993. "Evaluating the Cost of Conscription in the Netherlands," Harvard Institute of Economic Research Working Papers 1632, Harvard - Institute of Economic Research.
- Imbens, G. & Van Der Klaauw, W., 1993. "Evaluating the Cost of Conscription in the Netherlands," Working Papers 93-24, C.V. Starr Center for Applied Economics, New York University.
- Abe Yukiko, 1994. "Specific Capital, Adverse Selection, and Turnover: A Comparison of the United States and Japan," Journal of the Japanese and International Economies, Elsevier, vol. 8(3), pages 272-292, September.
- David Soskice, 1994. "Reconciling Markets and Institutions: The German Apprenticeship System," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 25-60 National Bureau of Economic Research, Inc.
- James Heckman, 1993. "Assessing Clinton's Program on Job Training, Workfare, and Education in the Workplace," NBER Working Papers 4428, National Bureau of Economic Research, Inc.
- Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1, July.
When requesting a correction, please mention this item's handle: RePEc:tpr:qjecon:v:113:y:1998:i:1:p:78-118. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anna Pollock-Nelson)
If references are entirely missing, you can add them using this form.