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Beyond Becker: Training in Imperfect Labor Markets

  • Daron Acemoglu
  • Jorn-Steffen Pischke

In this paper, we survey non-competitive theories of training. With competitive labor markets, firms never pay for investments in general training, whereas when labor markets are imperfect, firm-sponsored training arises as an equilibrium phenomenon. We discuss a variety of evidence which support the predictions of non-competitive theories, and we draw some tentative policy conclusions from these models.

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File URL: http://www.nber.org/papers/w6740.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6740.

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Date of creation: Sep 1998
Date of revision:
Publication status: published as Economic Journal, Vol.109 (February 1999): F112-F142.
Handle: RePEc:nbr:nberwo:6740
Note: LS
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  1. Acemoglu, D. & Pischke, J.S., 1997. "The Structure of Wages and Investment in General Training," Working papers 97-24, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. Acemoglu, D. & Pischki, J.S., 1996. "Why Do Firms Train? Theory and Evidence," Working papers 96-7, Massachusetts Institute of Technology (MIT), Department of Economics.
  3. Acemoglu, Daron, 1997. "Training and Innovation in an Imperfect Labour Market," Review of Economic Studies, Wiley Blackwell, vol. 64(3), pages 445-64, July.
  4. Katharine G. Abraham & Susan N. Houseman, 1993. "Job Security in America: Lessons from Germany," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number kagsnh1993, June.
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