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Adverse Selection and Information Advantages of Training Firms

Author

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  • Mohrenweiser, Jens
  • Wydra-Sommaggio, Gaby
  • Zwick, Thomas

Abstract

The possibility of adverse selection by training firms is common theoretical argument for company-sponsored investments in general skills. The paper derives a public and a private signal after apprenticeship training and shows that training firms are able to positively select graduates they keep. The public signal has a stronger impact on entry wages of employer changers than for stayers and private signals shows exactly the opposite pattern.

Suggested Citation

  • Mohrenweiser, Jens & Wydra-Sommaggio, Gaby & Zwick, Thomas, 2014. "Adverse Selection and Information Advantages of Training Firms," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100525, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc14:100525
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    References listed on IDEAS

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    Cited by:

    1. Zwick Thomas & Mohrenweiser Jens, 2015. "Youth Unemployment After Apprenticeship Training and Individual, Occupation, and Training Employer Characteristics," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(4-5), pages 418-432, August.

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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