Most skills acquired through on-the-job training may be specific to an occupation and therefore transferable to some but not all firms. This paper explores the relationship between the size of the local market for an occupation-specific skill and job-training outcomes. The Stevens (1994) model...

Because the employer and the firm incur a loss when a trained worker changes jobs, it appears probable that on-the-job training is selectively provided to workers who are less likely to change jobs. Furthermore, if there is belated information about employees' future mobility, it may be optimal...