Information advantages of training employers despite credible training certificates

Jens MohrenweiserBy, Gabriele Wydra-Somaggio and Thomas Zwick

Oxford Economic Papers, 2020, vol. 72, issue 3, 651-671

Abstract: Employers sponsor general training if they can get an information advantage about the skills of trainees. This advantage might vanish if credible external institutions grade successful training completion. We argue that despite a certificate, training firms can retain an information advantage and can positively select training completers because the training certificate does not capture all relevant skill dimensions. Training firms can get an information advantage on the non-certified skills such as soft skills. We show that the information advantage about non-certified skills can explain why training firms pay higher wages for training completers than outside firms and why employers are able to keep a positive selection of training participants.

JEL-codes: J24 J31 J62 J63 M52 M53 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1093/oep/gpz052 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Information Advantages of Training Employers Despite Credible Training Certificates (2017)
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:oup:oxecpp:v:72:y:2020:i:3:p:651-671.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by James Forder and Francis J. Teal

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().