Hiring costs for skilled workers and the supply of firm-provided training

Marc Blatter, Samuel Muehlemann, Samuel Schenker and Stefan Wolter

Oxford Economic Papers, 2016, vol. 68, issue 1, 238-257

Abstract: This article analyses how the costs of hiring skilled workers from the external labour market affect a firm’s supply of training. Using administrative survey data with detailed information on hiring and training costs for Swiss firms, we find evidence for substantial and increasing marginal hiring costs. However, firms can invest in internal training of unskilled workers and thereby avoid costs for external hiring. Controlling for a firm’s training investment, we find that a 1 standard deviation increase in average external hiring costs increases the number of internal training positions by more than half of a standard deviation.

Date: 2016
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Related works:
Working Paper: Hiring costs for skilled workers and the supply of firm-provided training (2016)
Working Paper: Hiring Costs for Skilled Workers and the Supply of Firm-Provided Training (2012)
Working Paper: Hiring Costs of Skilled Workers and the Supply of Firm-Provided Training (2012)
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