Information, Employer Size, Training, and Wage Growth

Alphonse Holtmann and Todd Idson ()
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Alphonse Holtmann: University of Miami

Eastern Economic Journal, 1995, vol. 21, issue 2, 187-196

Abstract: We posit that larger employers possess greater information than smaller employers about the effects of on-the-job training (OJT) investments on the productivity of their workers. As a result, larger employers pay a greater percentage of OJT costs, and OJT is effectively more firm-specific at larger firms. Supporting our model, we find: (1) the positive effect of productivity growth on wage growth is smaller in larger plants; (2) the adverse effect of minimum wage on wage growth is smaller in larger plants; and (3) the negative effect of initial OJT investments on starting wages is smaller in larger plants.

Keywords: Firm; Firms; On the Job Training; Pay; Productivity; Training; Wage (search for similar items in EconPapers)
JEL-codes: J24 J31 L11 (search for similar items in EconPapers)
Date: 1995
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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:21:y:1995:i:2:p:187-196

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