Not logged in.

Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title A Product Market Theory of Worker Training
Organization Unit
Authors
  • Hans Gersbach
  • Armin Schmutzler
Language
  • English
Institution University of Zurich
Series Name Working paper series / Socioeconomic Institute
Number No. 214
Date 2003
Abstract Text We develop a product market theory that explains why firms invest in general training of their workers. We consider a model where firms first decide whether to invest in general human capital, then make wage offers for each others’ trained employees and finally engage in imperfect product market competition. Equilibria with and without training, and multiple equilibria can emerge. If competition is suffciently soft and trained workers are substitutes, firms may invest in non-specific training if others do the same, because they would otherwise suffer a competitive disadvantage or need to pay high wages in order to attract trained workers. Government intervention can be socially desirable to turn training into a focal equilibrium.
Official URL http://www.econ.uzh.ch/wp.html
PDF File Download from ZORA
Export BibTeX
EP3 XML (ZORA)