Who pays for job training?
This paper addresses a puzzle in the UK labour market. Why is not there enough investment in job training when there is a high skill premium? We model this as a coordination game between firms and workers. Using a social planning model as a baseline, the paper demonstrates that while it is socially beneficial to invest in job training, the private sector may fail to internalize these benefits in a wide range of economies. The chance of this coordination failure is greater in economies with a higher inequality in the skill distribution and a higher rate of time preference.Creation-Date: 2008-11
|Date of creation:||Sep 2008|
|Contact details of provider:|| Postal: Department of Economics, University of St. Andrews, Fife KY16 9AL|
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References listed on IDEAS
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- Lars Peter Hansen & James J. Heckman, 1996. "The Empirical Foundations of Calibration," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 87-104, Winter.
- Espen R. Moen & Åsa Rosén, 2004.
"Does Poaching Distort Training?,"
Review of Economic Studies,
Oxford University Press, vol. 71(4), pages 1143-1162.
- Moen, Espen R & Rosén, Åsa, 2002. "Does Poaching Distort Training?," CEPR Discussion Papers 3468, C.E.P.R. Discussion Papers.
- Moen, Espen R. & Rosén, Åsa, 2002. "Does poaching distort training?," Working Paper Series 4/2002, Swedish Institute for Social Research.
- Haskel, Jonathan & Martin, Christopher, 2001. "Technology, Wages, and Skill Shortages: Evidence from UK Micro Data," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 642-658, October. Full references (including those not matched with items on IDEAS)
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