Collective versus segmentalist training system with a technology choice

Naoki Shintoyo ()
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Naoki Shintoyo: Ryukoku University

International Economics and Economic Policy, 2025, vol. 22, issue 1, No 19, 22 pages

Abstract: Abstract This study develops a model to examine two training systems: collective, in which all firms choose a standard technology and contribute to and recruit from a common pool of workers with general skills; and segmentalist, in which all firms use their own technology and provide their employees with firm-specific training to secure skilled labor. This analysis demonstrates how a collective training system requires firms to collaborate well. This can occur only under certain conditions, which yields multiple equilibria, thus implying that a segmentalist training system can potentially occur when the collective training system takes place. This study compares the social welfare between equilibria and examines the possibility of welfare-improving reforms that transform a segmentalist training system into a collective one. The findings may have implications for recent trends in the Japanese training system.

Keywords: Firm-sponsored training; General skills; Firm-specific skills; Technology choice; Japanese economy (search for similar items in EconPapers)
JEL-codes: J24 M53 M54 P52 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10368-024-00644-6

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