Economics at your fingertips  

On-the-Job Training, Establishment Size, and Firm Size: Evidence for Economies of Scale in the Production of Human Capital

Dan A. Black, Brett J. Noel and Zheng Wang

Southern Economic Journal, 1999, vol. 66, issue 1, 82-100

Abstract: Oi argues that the costs of monitoring employees rise with the value of the entrepreneur’s time. One way of economizing on these monitoring costs is through the provision of on-the-job training for new employees. In this paper, we argue that differences in training by firm- and establishment-size arise from cost advantages for larger firms; specifically, large firms and establishments have economies of scale in the provision of formal training and greater opportunities for informal coworker training. A unique data set is employed to estimate the relation among employer size and the intensity, duration, and composition of various training measures. It is possible that these cost advantages, which lead to greater amounts of training for employees of large firms, may explain, in part, the wage rate–firm size differential.

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (50) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:

Access Statistics for this article

Southern Economic Journal is currently edited by Laura Razzolini

More articles in Southern Economic Journal from Southern Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Laura Razzolini ().

Page updated 2023-11-11
Handle: RePEc:sej:ancoec:v:66:1:y:1999:p:82-100