Firm-Specific Training

Christopher Harris and Leonardo Felli

No 4580, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This Paper introduces two complementary models of firm-specific training: an informational model and a productivity-enhancement model. In both models, market provision of firm-specific training is inefficient. The nature of the inefficiency depends, however, on the balance between the two key components of training, namely productivity enhancement and employee evaluation. In the informational model, training results in a proportionate increase in productivity enhancement and employee evaluation, and training is underprovided by the market. In the productivity-enhancement model, training results in an increase in productivity enhancement but no change in employee evaluation, and training is overprovided by the market. In both models, turnover is inefficiently low.

Keywords: Firm-specific training; Productivity enhancement; Employee evaluation; Firm-specific human capital (search for similar items in EconPapers)
JEL-codes: C78 D83 J41 (search for similar items in EconPapers)
Date: 2004-08
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Firm-specific training (2018)
Working Paper: Firm-Specific Training (2018)
Working Paper: Firm-specific training (2018)
Working Paper: Firm-specific training (2006)
Working Paper: Firm-Specific Training (2005)
Working Paper: Firm-Specific Training (2004)
Working Paper: Firm-Specific Training (2004)
Working Paper: Firm-Specific Training (2004)
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