Beyond Becker: Training in Imperfect Labor Markets
39 Pages Posted: 19 Jan 1999 Last revised: 10 May 2000
Date Written: September 1998
In this paper, we survey non-competitive theories of training. With competitive labor markets, firms never pay for investments in general training, whereas when labor markets are imperfect, firm-sponsored training arises as an equilibrium phenomenon. We discuss a variety of evidence which support the predictions of non-competitive theories, and we draw some tentative policy conclusions from these models.
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