Innovation, Human Capital Destruction and Firms’ Investment in Training

Maria Rosaria Carillo and Alberto Zazzaro ()

Manchester School, 2000, vol. 68, issue 3, 331-348

Abstract: We analyse the effect of human capital obsolescence due to the introduction of technological innovations on the long‐run growth rate, and show that in equilibrium the pace of technical change may be faster than is socially optimal. In such cases, the existence of market imperfections, and their costs for firms, may improve the welfare for the society as a whole. In particular, we assume that firms do not have full information on workers’ skills but can arrange some form of internal training that permits them to acquire the lacking information. Training costs reduce research and development investments by firms and in this way draw the market equilibrium closer to the social optimum.

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1111/1467-9957.00197

Related works:
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:bla:manchs:v:68:y:2000:i:3:p:331-348

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1463-6786

Access Statistics for this article

Manchester School is currently edited by Keith Blackburn

More articles in Manchester School from University of Manchester Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().