Life-cycle theory predicts that employers enter into implicit contracts with newly hired employees to ensure rent-sharing and to decrease turnover after firm-specific training investments. Typically, these implicit contracts would include both upward sloping earning profiles and mandatory...

Although early human capital theory recognized the relevance of workers' experience, its focus was on education and formal training. Recent studies find that much of the performance of newly hired workers is driven by learning by doing or learning from peers or supervisors in the workplace....