turnover and endogenous general human capital formation. We show that search frictions do not distort training decisions if … efficient coordination devices there is too much turnover and too little investments in general training. Nonetheless, the … number of training firms and the amount of training provided are constrained optimal, and training subsidies therefore reduce …

The paper examines the optimal level of training investment when trained workers are mobile, wage contracts are time …-consistent, and training comprises both specific and general skills. It is shown that, in the absence of a social planner, the firm …-post monopsonistic power in wage determination. Local union-firm wage bargaining ensures that the post-training wage is set sufficiently …

intensity of training for each worker. In the benchmark case, we consider wage and training decisions made by firms in an … the workers who are hired receive too little training. This is caused by the firms' discount rate exceeding the social … increasing training intensity, while reducing welfare by lowering the number of workers trained. Using the British Household …

In the standard model of human capital with perfect labor markets, workers pay for general training. When labor market … impact on training. Our results suggest that the more frictional and regulated labor markets in Europe and Japan may generate … more firm-sponsored general training than the U.S. …

Becker's theory of human capital predicts that minimum wages should reduce training investments for affected workers …, because they prevent these workers from taking wage cuts necessary to finance training. We show that when the assumption of … perfectly competitive labour markets underlying this theory is relaxed, minimum wages can increase training of affected workers …

This paper uses firm level panel data of firm provided training to estimate its impact on productivity and wages. To … endogeneity of input factors and training is applied. The productivity premium for a trained worker is estimated at 23%, while the … wage premium of training is estimated at 12%. Our results give support to recent theories that explain work related …