Skilled Workers' Unemployment and Firms' Training Decisions

University of Siena, Department of Economics, Working Paper No. 344

17 Pages Posted: 27 Jan 2003

See all articles by Maria De Paola

Maria De Paola

Università degli Studi della Calabria - Department of Economics and Statistics

Vincenzo Scoppa

Università degli Studi della Calabria - Department of Economics and Statistics

Date Written: December 2001

Abstract

In this paper it is shown that by explicitly considering the existence of unemployed trained workers, some of the results shown by Acemoglu and Pischke regarding the effect of unemployment on the firms' training decisions become ambiguous. In fact, two contrasting effects have to be considered: on the one hand, unemployment encourages training provision by firms through the negative effect on wages; on the other hand, the search for trained workers becomes easier when the unemployment rate is higher. When wages are little responsive to unemployment, this second effect might prevail.

JEL Classification: J41, J24, J31

Suggested Citation

De Paola, Maria and Scoppa, Vincenzo, Skilled Workers' Unemployment and Firms' Training Decisions (December 2001). University of Siena, Department of Economics, Working Paper No. 344. Available at SSRN: https://ssrn.com/abstract=314741 or http://dx.doi.org/10.2139/ssrn.314741

Maria De Paola

Università degli Studi della Calabria - Department of Economics and Statistics ( email )

via Ponte Bucci
Arcavacata di Rende, Cosenza 87036
Italy

Vincenzo Scoppa (Contact Author)

Università degli Studi della Calabria - Department of Economics and Statistics ( email )

via Ponte Bucci
Arcavacata di Rende, Cosenza 87036
Italy

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