with respect to the ability of their employees when training is certified by credible external institutions. We apply an … institutions at that the end of apprenticeship training can be signalled to outside employers. Apprenticeship graduates however … cannot signal their work-related ability – measured by a small voluntary bonus paid by the training employer – to the outside …

of the returns to general training and be willing to pay for it despite its general nature. However this outcome is not … efficient, in the sense that too few workers are trained and workers who are hired receive too little training. We consider how … different institutions can affect this inefficiency. Industry-level minimum wages can remove the training inefficiency and …