Efficiency in a search and matching model with training costs
Economic Modelling, 2011, vol. 28, issue 4, 1838-1841
This paper studies the efficiency of the search and matching model with training costs. I incorporate productivity enhancing firm-specific skill training into the search and matching model of Pissarides (2000). I demonstrate that while the decentralized economy can be efficient if training costs are not sunk at the time of wage determination, the decentralized economy is not efficient due to a hold-up problem if training costs are sunk.
Keywords: Search; and; matching; model; Efficiency; Training (search for similar items in EconPapers)
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Working Paper: Efficiency in a Search and Matching Model with Training Costs (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:28:y:2011:i:4:p:1838-1841
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