Firm-sponsored Work-Related Training in Frictional Labour Markets: An empirical analysis for Switzerland
Work-related training is considered to be very important for providing the workforce with the necessary skills for maintaining and enhancing the competitiveness of the firms and the economy. According to the classical human capital theory general training is entirely financed by workers. This prediction is at odds with the empirical evidence. This observation inspired new theoretical models with frictional labour markets aiming at explaining the empirical evidence. These frictions create incentives for firms to invest in general training. Most important from a policy point of view is that the amount of training in this frictional world is below the optimal first-best solution achieved in the classical human capital model. Instruments to increase investment in training depend on the dominating kind of friction. This paper tries to identify the sources of frictions in the Swiss labour market. The results indicate that internal wage guarantees (minimum wages set in labour contracts) may play an important role
|Date of creation:||Oct 2003|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 0041 31 631 45 06
Fax: 41 31 631 37 83
Web page: http://www.vwi.unibe.ch/content/publikationen/index_eng.html
More information through EDIRC
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.:
- Booth, Alison L & Zoega, Gylfi, 2001.
"Is Wage Compression a Necessary Condition for Firm-Financed General Training?,"
CEPR Discussion Papers
2845, C.E.P.R. Discussion Papers.
- Alison L. Booth & Gylfi Zoega, 2004. "Is wage compression a necessary condition for firm-financed general training?," Oxford Economic Papers, Oxford University Press, vol. 56(1), pages 88-97, January.
- Daron Acemoglu & Jorn-Steffen Pischke, 1998.
"The Structure of Wages and Investment in General Training,"
NBER Working Papers
6357, National Bureau of Economic Research, Inc.
- Daron Acemoglu & Jorn-Steffen Pischke, 1999. "The Structure of Wages and Investment in General Training," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 539-572, June.
- Acemoglu, Daron & Pischke, Jörn-Steffen, 1998. "The Structure of Wages and Investment in General Training," CEPR Discussion Papers 1833, C.E.P.R. Discussion Papers.
- Acemoglu, D. & Pischke, J.S., 1997. "The Structure of Wages and Investment in General Training," Working papers 97-24, Massachusetts Institute of Technology (MIT), Department of Economics.
- Pischke, Jörn-Steffen, 2000.
"Continuous Training in Germany,"
IZA Discussion Papers
137, Institute for the Study of Labor (IZA).
- Jorn-Steffen Pischke, 1996. "Continuous Training in Germany," NBER Working Papers 5829, National Bureau of Economic Research, Inc.
- Pischke, Jörn-Steffen, 2000. "Continuous Training In Germany," CEPR Discussion Papers 2428, C.E.P.R. Discussion Papers.
- Pischke, J-S, 1996. "Continuous Training in Germany," Working papers 96-28, Massachusetts Institute of Technology (MIT), Department of Economics.
- Michael Gerfin, 2003.
"Work-Related Training and Wages: An empirical analysis for male workers in Switzerland,"
dp0316, Universitaet Bern, Departement Volkswirtschaft.
- Gerfin, Michael, 2004. "Work-Related Training and Wages: An Empirical Analysis for Male Workers in Switzerland," IZA Discussion Papers 1078, Institute for the Study of Labor (IZA).
- Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 142-71, January.
- Groot, Wim, 1995. "The Wage Effects of Investments in Enterprise-Related Training," Empirical Economics, Springer, vol. 20(1), pages 133-47.
- John M. Barron & Mark C. Berger & Dan A. Black, 1997. "On-the-Job Training," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ojt, June.
- Goux, Dominique & Maurin, Eric, 2000. "Returns to firm-provided training: evidence from French worker-firm matched data1," Labour Economics, Elsevier, vol. 7(1), pages 1-19, January.
When requesting a correction, please mention this item's handle: RePEc:ube:dpvwib:dp0317. 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: (Silvia Glusstein-Gerber)
If references are entirely missing, you can add them using this form.