A model of training policies in an imperfectly competitive labour market
The model developed in this paper highlights the structure of costs and benefits on which the decisions of investment in human capital by firms and workers depend under the hypothesis of imperfect labour markets. In this case, the wage after the training period remains below productivity. Several options of training policy are analysed through the model and their outcomes compared for what concerns the level of training and other outcomes. It is confirmed that a training subsidy financed by a tax on wage of trained workers does not determine the desired effects when labour market is imperfect. On the contrary, a subsidy can be effective if it is financed through profit taxation. Moreover, when workersâ€™ union and employers bargain over wage of trained workers, a positive effect on the total number of trainees in the economy can arise.
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- Booth, Alison L & Francesconi, Marco & Zoega, Gylfi, 1999. "Training, Rent-Sharing and Unions," CEPR Discussion Papers 2200, C.E.P.R. Discussion Papers.
- Stevens, Margaret, 1999. "Human Capital Theory and UK Vocational Training Policy," Oxford Review of Economic Policy, Oxford University Press, vol. 15(1), pages 16-32, Spring.
- Alan Manning & Ted To, 2002. "Oligopsony and Monopsonistic Competition in Labor Markets," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 155-174, Spring.
- Booth, Alison L. & Francesconi, Marco & Zoega, Gylfi, 2003.
"Unions, Work-Related Training, and Wages: Evidence for British Men,"
IZA Discussion Papers
737, Institute for the Study of Labor (IZA).
- Alison L. Booth & Marco Francesconi & Gylfi Zoega, 2003. "Unions, work-related training, and wages: Evidence for British men," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(1), pages 68-91, October.
- Alison L. Booth & Marco Francesconi & Gylfi Zoega, 2003. "Unions, Work-Related Training, and Wages: Evidence for British Men," ILR Review, Cornell University, ILR School, vol. 57(1), pages 68-91, October.
- Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
- repec:cup:cbooks:9780521453264 is not listed on IDEAS
- repec:rie:review:v:9:y:2004:i:1:n:3 is not listed on IDEAS
- Booth, Alison L & Chatterji, Monojit, 1998. "Unions and Efficient Training," Economic Journal, Royal Economic Society, vol. 108(447), pages 328-43, March.
- Booth, Alison L. & Francesconi, Marco & Zoega, Gylfi, 2002. "Oligopsony, Institutions and the Efficiency of General Training," IZA Discussion Papers 618, Institute for the Study of Labor (IZA).
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