Dividing the Costs and Returns to General Training

Mark A Loewenstein and James Spletzer

Journal of Labor Economics, 1998, vol. 16, issue 1, 142-71

Abstract: Data from the National Longitudinal Survey of Youth indicate that the employer often pays the explicit costs of not only on-site training but also off-site general training. Although few of these costs appear to be passed on to workers in the form of a lower wage while in training, completed spells of general training paid for by previous employers have a larger wage effect than completed spells of general training paid for by the current employer. A model where contract enforcement considerations cause employers to share the costs and returns to purely general training can explain these findings. Copyright 1998 by University of Chicago Press.

Date: 1998
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