Hiring Costs of Skilled Workers and the Supply of Firm-Provided Training
This paper analyzes how the costs of hiring skilled workers from the external labor market affect a firm's supply of training. Using administrative survey data with detailed information on hiring and training costs for Swiss firms, we find evidence for substantial and increasing marginal hiring costs. However, firms can invest in internal training of unskilled workers and thereby avoid costs for external hiring. Controlling for a firm's training investment, we find that a one standard deviation increase in average external hiring costs increases the number of internal training positions by 0.7 standard deviations.
|Date of creation:||Feb 2012|
|Date of revision:|
|Publication status:||published in: Oxford Economic Papers, 2016, 68 (1), 238-257.|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
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.:
- Pfann, Gerald A. & Verspagen, Bart, 1989. "The structure of adjustment costs for labour in the Dutch manufacturing sector," Economics Letters, Elsevier, vol. 29(4), pages 365-371.
- Alan Manning, 2001.
"A Generalised Model of Monopsony,"
CEP Discussion Papers
dp0499, Centre for Economic Performance, LSE.
- Ejarque, JoÃ£o Miguel & Nilsen, Ã˜ivind Anti, 2008.
"Identifying Adjustment Costs of Net and Gross Employment Changes,"
Economics Discussion Papers
8924, University of Essex, Department of Economics.
- Oivind A. Nilsen & Joao M. Ejarque, 2007. "Identifying Adjustment Costs of Net and Gross Employment Changes," 2007 Meeting Papers 670, Society for Economic Dynamics.
- Ejarque, Joao & Nilsen, Øivind Anti, 2008. "Identifying Adjustment Costs of Net and Gross Employment Changes," IZA Discussion Papers 3703, Institute for the Study of Labor (IZA).
- Daniel S. Hamermesh & Gerard A. Pfann, 1996.
"Adjustment Costs in Factor Demand,"
Journal of Economic Literature,
American Economic Association, vol. 34(3), pages 1264-1292, September.
- John M. Abowd & Francis Kramarz, 1997.
"The Costs of Hiring and Separations,"
NBER Working Papers
6110, National Bureau of Economic Research, Inc.
- Alan Manning, 2010.
"Imperfect competition in the labour market,"
LSE Research Online Documents on Economics
28729, London School of Economics and Political Science, LSE Library.
- Barron, John M & Bishop, John & Dunkelberg, William C, 1985. "Employer Search: The Interviewing and Hiring of New Employees," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 43-52, February.
- Yashiv, E., 1999.
"Hiring as Investment Behavior,"
35-99, Tel Aviv.
- Muehlemann, Samuel & Wolter, Stefan C., 2011. "Firm-sponsored training and poaching externalities in regional labor markets," Regional Science and Urban Economics, Elsevier, vol. 41(6), pages 560-570.
- Muehlemann, Samuel & Pfeifer, Harald & Walden, Günter & Wenzelmann, Felix & Wolter, Stefan C., 2010. "The financing of apprenticeship training in the light of labor market regulations," Labour Economics, Elsevier, vol. 17(5), pages 799-809, October.
- Rainer Winkelmann, 1996. "Employment Prospects and Skill Acquisition of Apprenticeship-Trained Workers in Germany," ILR Review, Cornell University, ILR School, vol. 49(4), pages 658-672, July.
- Samuel Muehlemann & Juerg Schweri & Rainer Winkelmann & Stefan C. Wolter, 2007.
"An Empirical Analysis of the Decision to Train Apprentices,"
CEIS, vol. 21(3), pages 419-441, 09.
- Samuel Muehlemann & Stefan C. Wolter & Jürg Schweri & Rainer Winkelmann, 2007. "An empirical analysis of the decision to train apprentices," Economics of Education Working Paper Series 0005, University of Zurich, Institute for Strategy and Business Economics (ISU).
- Stevens, Margaret, 1994. "An Investment Model for the Supply of Training by Employers," Economic Journal, Royal Economic Society, vol. 104(424), pages 556-70, May.
- Lindley, Robert M, 1975. "The Demand for Apprentice Recruits by the Engineering Industry, 1951-71," Scottish Journal of Political Economy, Scottish Economic Society, vol. 22(1), pages 1-24, February.
- Booth, Alison L & Satchell, Stephen E, 1994. "Apprenticeships and Job Tenure," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 676-95, October.
- Francis Kramarz & Marie-Laure Michaud, 2002.
"The Shape of Hiring and Separation Costs,"
2002-38, Centre de Recherche en Economie et Statistique.
- Kramarz, Francis & Michaud, Marie-Laure, 2003. "The Shape of Hiring and Separation Costs," CEPR Discussion Papers 3685, C.E.P.R. Discussion Papers.
- Kramarz, Francis & Michaud, Marie-Laure, 2004. "The Shape of Hiring and Separation Costs," IZA Discussion Papers 1170, Institute for the Study of Labor (IZA).
- Dube, Arindrajit & Freeman, Eric & Reich, Michael, 2010. "Employee Replacement Costs," Institute for Research on Labor and Employment, Working Paper Series qt7kc29981, Institute of Industrial Relations, UC Berkeley.
- Vella, F, 1992. "Simple Tests for Sample Selection Bias in Censored and Discrete Choice Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 7(4), pages 413-21, Oct.-Dec..
- Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70, pages 538.
- Kramarz, Francis & Michaud, Marie-Laure, 2010. "The shape of hiring and separation costs in France," Labour Economics, Elsevier, vol. 17(1), pages 27-37, January.
- Cappelli, Peter, 2004. "Why do employers pay for college?," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 213-241.
- Blatter, Marc & Muehlemann, Samuel & Schenker, Samuel, 2012.
"The costs of hiring skilled workers,"
European Economic Review,
Elsevier, vol. 56(1), pages 20-35.
- Wolter, Stefan C. & Ryan, Paul, 2011. "Apprenticeship," Handbook of the Economics of Education, Elsevier.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp6344. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.