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.
|Date of creation:||Nov 2005|
|Contact details of provider:|| Postal: Via Del Castro Laurenziano 9, 00161 Roma|
Phone: +39 6 49766353
Fax: +39 6 4462040
Web page: http://www.dipecodir.it/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9-9.
- Hart,Robert A. & Moutos,Thomas, 2008.
"Human Capital, Employment and Bargaining,"
Cambridge University Press, number 9780521061032, October.
- Alison L. Booth & Marco Francesconi & Gylfi Zoega, 2003.
"Unions, Work-Related Training, and Wages: Evidence for British Men,"
Cornell University, ILR School, vol. 57(1), pages 68-91, October.
- 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).
- Croce Giuseppe, 2004. "Verso una teoria non competitiva della formazione generale. Una rassegna degli sviluppi recenti nella letteratura del capitale umano," Rivista italiana degli economisti, Società editrice il Mulino, issue 1, pages 77-110.
- 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.
- 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).
- Booth, Alison L & Francesconi, Marco & Zoega, Gylfi, 1999. "Training, Rent-Sharing and Unions," CEPR Discussion Papers 2200, C.E.P.R. Discussion Papers.
- 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.
When requesting a correction, please mention this item's handle: RePEc:sap:wpaper:wp90. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luisa Giuriato)
If references are entirely missing, you can add them using this form.