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An Explanation of International Differences in Education and Workplace Training


  • Brunello, Giorgio

    () (University of Padova)

  • Medio, Alfredo

    (Università Ca’ Foscari di Venezia)


We develop a simple search equilibrium model of workplace training and education based on two features. First, investment in education improves job-related learning skills and reduces training costs burdened by firms. Second, firms with vacant skilled job slots can choose between recruitment from the market and training. Compared to Germany and Japan, the US has both a higher inflow rate into unemployment and a higher efficiency of the matching process. While the combined effort of these differences on the share of educated labor is ambiguous, the effect on the percentage of firms undertaking workplace training is to unambiguously reduce it.

Suggested Citation

  • Brunello, Giorgio & Medio, Alfredo, 2000. "An Explanation of International Differences in Education and Workplace Training," IZA Discussion Papers 114, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp114

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    References listed on IDEAS

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    2. Daron Acemoglu & Jorn-Steffen Pischke, 1999. "The Structure of Wages and Investment in General Training," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 539-572, June.
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    Cited by:

    1. Castelnuovo, Efrem, 2010. "Tracking U.S. inflation expectations with domestic and global indicators," Journal of International Money and Finance, Elsevier, vol. 29(7), pages 1340-1356, November.
    2. Mühlemann, Samuel & Wolter, Stefan C. & Wüest, Adrian, 2009. "Apprenticeship Training and the Business Cycle," IZA Discussion Papers 4460, Institute for the Study of Labor (IZA).
    3. Giuseppe Croce & Emanuela Ghignoni, 2012. "Employer-provided Training and Knowledge Spillovers: Evidence from Italian Local Labour Markets," Regional Studies, Taylor & Francis Journals, vol. 46(3), pages 339-353, May.
    4. Boom, Anette, 2005. "Firms' investments in general training and the skilled labour market," Labour Economics, Elsevier, vol. 12(6), pages 781-805, December.
    5. Brunello, Giorgio & Gambarotto, Francesca, 2004. "Agglomeration Effects on Employer-Provided Training: Evidence from the UK," IZA Discussion Papers 1055, Institute for the Study of Labor (IZA).
    6. Naoki Shintoyo, 2008. "Creation of jobs and firm-sponsored training in a matching model of unemployment," Journal of Economics, Springer, vol. 93(2), pages 145-176, March.
    7. Biagetti, Marco & Scicchitano, Sergio, 2009. "Inequality in workers’ lifelong learning across european countries: Evidence from EU-SILC data-set," MPRA Paper 17356, University Library of Munich, Germany.
    8. Naderi, A. & Mace, J., 2003. "Education and earnings: a multilevel analysis: A case study of the manufacturing sector in Iran," Economics of Education Review, Elsevier, vol. 22(2), pages 143-156, April.
    9. Brunello, Giorgio & De Paola, Maria, 2008. "Training and economic density: Some evidence form Italian provinces," Labour Economics, Elsevier, vol. 15(1), pages 118-140, February.
    10. Guido Baldi & Imke Brüggemann-Borck & Thore Schlaak, 2014. "The Effect of the Business Cycle on Apprenticeship Training: Evidence from Germany," Journal of Labor Research, Springer, vol. 35(4), pages 412-422, December.
    11. Anette Boom, "undated". "Firms' Investments in General Training and the Market for Skilled Labour," Papers 013, Departmental Working Papers.
    12. Badescu, Mircea & Loi, Massimo, 2010. "Participation in training of adult workers in European countries. Evidences from recent surveys," MPRA Paper 32202, University Library of Munich, Germany.
    13. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA).
    14. Brunello, Giorgio & Gambarotto, Francesca, 2007. "Do spatial agglomeration and local labor market competition affect employer-provided training? Evidence from the UK," Regional Science and Urban Economics, Elsevier, vol. 37(1), pages 1-21, January.
    15. Hoffman, Mitchell & Burks, Stephen V., 2017. "Training Contracts, Employee Turnover, and the Returns from Firm-Sponsored General Training," IZA Discussion Papers 10835, Institute for the Study of Labor (IZA).
    16. Charlot, Olivier & Decreuse, Bruno & Granier, Pierre, 2005. "Adaptability, productivity, and educational incentives in a matching model," European Economic Review, Elsevier, vol. 49(4), pages 1007-1032, May.
    17. Beblavý, Miroslav & Thum, Anna-Elisabeth & Potjagailo, Galina, 2013. "When do adults learn? A cohort analysis of adult education in Europe," CEPS Papers 8059, Centre for European Policy Studies.
    18. Asplund, Rita, 2004. "The Provision and Effects of Company Training. A brief review of the literature," Discussion Papers 907, The Research Institute of the Finnish Economy.
    19. Giorgio Brunello & Maria De Paola, 2004. "Market Failures and the Under-Provision of Training," CESifo Working Paper Series 1286, CESifo Group Munich.
    20. Naoki Shintoyo, 2010. "Worker-financed versus Firm-sponsored Training: How are Skilled Workers Supplied to the Economy?," Economica, London School of Economics and Political Science, vol. 77(305), pages 110-127, January.
    21. Zheng Shi & Zheng Wen & Jin Xia, 2010. "A Simple, Analytically Solvable, Dual-Space Economic Agglomerations Model," Networks and Spatial Economics, Springer, vol. 10(2), pages 261-271, June.
    22. Rita Asplund, 2005. "The Provision and Effects of Company Training: A Brief Review of the Literature," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 47-73.
    23. Dan Farhat, 2011. "Bookworms versus Party Animals: An Artificial Labor Market with Human and Social Capital Accumulation," Working Papers 1103, University of Otago, Department of Economics, revised May 2011.

    More about this item


    workplace training; Education;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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