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Efficiency of skill training for acquiring sector-specific skills with search frictions


  • Keisuke Kawata

    () (Graduate School of Economics, Osaka University)


This paper develops a simple search model in which sector-specific trainings are endogenously determined with or without a negotiation between a worker and an employer, and characterizes the allocation of two types of training. If a worker and an employer can negotiate over the amount of skill training, the training hours to acquire a skill specific to this employer's sector may be longer or shorter in the decentralized allocation than in the socially efficient allocation. Meanwhile, if they cannot negotiate, the training hours are definitely longer in the decentralized allocation than in the socially efficient allocation.

Suggested Citation

  • Keisuke Kawata, 2011. "Efficiency of skill training for acquiring sector-specific skills with search frictions," Discussion Papers in Economics and Business 11-21, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  • Handle: RePEc:osk:wpaper:1121

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    Excess entry; sector-specific skills; job search; wage bargaining;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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