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Dividing the Costs and Returns to General Training

  • Loewenstein, Mark A
  • Spletzer, James R

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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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 16 (1998)
Issue (Month): 1 (January)
Pages: 142-71

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Handle: RePEc:ucp:jlabec:v:16:y:1998:i:1:p:142-71
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