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Enterprise-related training and poaching externalities

Author

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  • Alexandre Léné

    (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

Abstract

Labour poaching is a potential problem in work-linked training systems. Once trained, young people can be poached by rival firms, which threatened the training firm's investment. A distinction is made between two types of workforce poaching. It is shown that it may be rational for some firms to train young people, even if they then lose part of their workforce. However, this situation is not socially optimal: it does not exclude underinvestment or skilled labour shortages. This may justify government intervention. However, the introduction of subsidies can have perverse effects.

Suggested Citation

  • Alexandre Léné, 2002. "Enterprise-related training and poaching externalities," Post-Print halshs-00150509, HAL.
    • Handle: RePEc:hal:journl:halshs-00150509
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00150509v1
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    References listed on IDEAS

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    2. Francisca Bremberger & Rudolf Hochholzer & Peter Huber, 2016. "Labour Turnover, Employment Density and Employer Provided Training: Evidence from Vienna," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 2(1), pages 5-22.

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