This paper develops an equilibrium job search model in which the employed worker privately accumulates human capital and continually searches for a better paying job. Firms encourage production and discourage turnover by rewarding with bonus payments and long service allowances, respectively,...

We analyze the provision of informal general training in the frictional labor market in which employers cannot commit to training levels and workers cannot commit to stay. We demonstrate that employers' training decisions are driven by both an investment motive, to improve productivity, and a...