Firm-Specific Training

Leonardo Felli () and Christopher J Harris

No 4580, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This Paper introduces two complementary models of firm-specific training: an informational model and a productivity-enhancement model. In both models, market provision of firm-specific training is inefficient. The nature of the inefficiency depends, however, on the balance between the two key components of training, namely productivity enhancement and employee evaluation. In the informational model, training results in a proportionate increase in productivity enhancement and employee evaluation, and training is underprovided by the market. In the productivity-enhancement model, training results in an increase in productivity enhancement but no change in employee evaluation, and training is overprovided by the market. In both models, turnover is inefficiently low.

Keywords: employee evaluation; firm-specific human capital; firm-specific training; productivity enhancement (search for similar items in EconPapers)
JEL-codes: C78 D83 J41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2004-08

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Related works:
Working Paper: Firm-Specific Training (2004)
Working Paper: Firm-Specific Training (2004)
Working Paper: Firm-Specific Training (2005)
Working Paper: Firm-Specific Training (2004)
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