Efficiency in a Search and Matching Model with Training Costs

This paper studies the efficiency of the search and matching model with training costs. I incorporate productivity enhancing firm-specific skill training into the search and matching model of Pissarides (2000). I demonstrate that while the decentralized economy can be efficient if training costs are not sunk at the time of wage determination, the decentralized economy is not efficient due to a hold-up problem if training costs are sunk.

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Year of publication:	2011-03
Authors:	Miyamoto, Hiroaki
Institutions:	Graduate School of International Relations, International University of Japan
Subject:	Search and matching model \| Efficiency \| Training

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number EMS_2011_09 14 pages
Classification:	E24 - Employment; Unemployment; Wages ; J40 - Particular Labor Markets. General ; J64 - Unemployment: Models, Duration, Incidence, and Job Search
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010627439