Beyond Becker : training in imperfect labor markets

54 Pages·1998·2.5 MB·English

by  Acemoglu, Daron

I; :
working paper
department
economics
of
BEYOND BECKER: TRAINING IN
IMPERFECTLABOR MARKETS* I
Daron Acemoglu
Jorn-Steffen Pischke
98-12 September 1998
massachusetts
institute of
technology
50 memorial drive
Cambridge, mass. 02139

WORKING PAPER
DEPARTMENT
OF ECONOMICS
BEYOND BECKER: TRAINING IN
IMPERFECTLABOR MARKETS*
Daron Acemoglu
Jorn-Steffen Pischke
98-12 September 1998
MASSACHUSETTS
OF
INSTITUTE
TECHNOLOGY
50 MEMORIAL DRIVE
CAMBRIDGE, MASS. 02142
MASSAC: ISTITUTE
OFTECHNOLOGY
JAN 2 8 1SS9
LIBRARIES
Beyond Becker:
Training in Imperfect Labor Markets5
Daron Acemoglu and Jorn-Steffen Pischke
MIT and NBER MIT and NBER
September 1998
Abstract
In this paper, we survey non-competitive theories of training. With compet-
itive labor markets, firms never pay for investments in general training, whereas
when labor markets are imperfect, firm-sponsored training arises as an equilib-
rium phenomenon. We discuss a variety ofevidence which support the predictions
of non-competitive theories, and we draw some tentative policy conclusions from
these models.
* This paper has been prepared for the first issue of Economic Journal Features. We thank Steve
Machin, Jim Robinson and an anonymous referee for useful comments. Acemoglu acknowledges fi-
nancial support from the National Science Foundation Grant SBR-9602116. Some of the data used
in this paper have been obtained from the German Zentralarchiv fur Empirische Sozialforschung at
the University of KOln (ZA). The data for the study "Qualification and Berufsverlauf" were collected
by the Bundesinstitut fiir Berufsbildung and the Institut fur Arbeitsmarkt- und Berufsforschung and
documented by the ZA. Neither the producers of the data nor the ZA bear any responsibility for the
analysis and Interpretation of the data in this paper.
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