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Dividing the Costs and Returns to General Training

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  • Loewenstein, Mark A
  • Spletzer, James R

Abstract

Data from the National Longitudinal Survey of Youth indicate that the employer often pays the explicit costs of not only on-site training but also off-site general training. Although few of these costs appear to be passed on to workers in the form of a lower wage while in training, completed spells of general training paid for by previous employers have a larger wage effect than completed spells of general training paid for by the current employer. A model where contract enforcement considerations cause employers to share the costs and returns to purely general training can explain these findings. Copyright 1998 by University of Chicago Press.

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  • Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 142-171, January.
    • Handle: RePEc:ucp:jlabec:v:16:y:1998:i:1:p:142-71
    DOI: 10.1086/209885
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    References listed on IDEAS

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