Economists have argued that one function of fringe benefits is to reduce turnover. However, the effect on quits of the marginal dollar of benefits relative to wages is underresearched. We use the benefit incidence data in the 1979 National Longitudinal Survey of Youth and the cost information in...

We investigate the functional form for formal training in a wage equation and derive estimates of its rate of return. The cube root fits best in our two data sets. We show that if wages are not adjusted continuously, estimating the return to training requires one lag and one lead of training....

This paper constructs an equilibrium job-matching model where workers differ in their attachment to the labor force. The model predicts that workers with weaker attachment to the labor market will receive lower starting wages and lower post-training wages, and will be placed in jobs that offer...

Using data from the Employer Opportunity Pilot Project (EOPP) survey and the National Longitudinal Survey of Youth (NLSY), we explicitly document the specificity and generality of employer-provided training, and we analyze how wage growth and mobility are influenced by our direct measures of...