Beyond Becker: Training in Imperfect Labor Markets
NBER Working Paper No. 6740
In this paper, we survey non-competitive theories of training. With competitive labor markets, firms never pay for investments in general training, whereas when labor markets are imperfect, firm-sponsored training arises as an equilibrium phenomenon. We discuss a variety of evidence which support the predictions of non-competitive theories, and we draw some tentative policy conclusions from these models.
Published: Economic Journal, Vol.109 (February 1999): F112-F142.