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|
Phone: 01334 462436
Fax: 01334 462444
Web page: https://www.st-andrews.ac.uk/cdma
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- 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.
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- Nickell, Stephen & Bell, Brian, 1995. "The Collapse in Demand for the Unskilled and Unemployment across the OECD," Oxford Review of Economic Policy, Oxford University Press, vol. 11(1), pages 40-62, Spring. Full references (including those not matched with items on IDEAS)
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