Training Contracts, Employee Turnover, and the Returns from Firm-sponsored General Training
Mitchell Hoffman and
Stephen Burks
No 23247, NBER Working Papers from National Bureau of Economic Research, Inc
Abstract:
Firms may be reluctant to provide general training if workers can quit and use their gained skills elsewhere. “Training contracts” that impose a penalty for premature quitting can help alleviate this inefficiency. Using plausibly exogenous contractual variation from a leading trucking firm, we show that two training contracts significantly reduced post-training quitting, particularly when workers are approaching the end of their contracts. Simulating a structural model, we show that observed worker quit behavior exhibits aspects of optimization (for one of the two contracts), and that the contracts increased firm profits from training and reduced worker welfare relative to no contract.
JEL-codes: J24 J41 M53 (search for similar items in EconPapers)
Date: 2017-03
New Economics Papers: this item is included in nep-hrm and nep-lma
Note: LE LS PE POL PR
References: Add references at CitEc
Citations: View citations in EconPapers (5)
Downloads: (external link)
http://www.nber.org/papers/w23247.pdf (application/pdf)
Related works:
Working Paper: Training Contracts, Employee Turnover, and the Returns from Firm-Sponsored General Training (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:23247
Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w23247
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by (wpc@nber.org).