Training and Search on the Job

Rasmus Lentz and Nicolas Roys

No 2016-25, Working Papers from Federal Reserve Bank of St. Louis

Abstract: The paper studies human capital accumulation over workers? careers in an on the job search setting with heterogenous firms. In renegotiation proof employment con- tracts, more productive firms provide more training. Both general and specific training induce higher wages within jobs, and with future employers, even conditional on the future employer type. Because matches do not internalize the specific capital loss from employer changes, specific human capital can be over-accumulated, more so in low type firms. While validating the Acemoglu and Pischke (1999) mechanisms, the analysis nevertheless arrives at the opposite conclusion: That increased labor market friction reduces training in equilibrium.

Keywords: Wage contracts; human capital; training; wage dispersion; frictional labor markets; optimal contract design; firm heterogeneity; sorting (search for similar items in EconPapers)
JEL-codes: D21 D43 D83 E24 J24 J31 J33 J41 J62 J63 J64 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2015-10-30
New Economics Papers: this item is included in nep-dge, nep-hrm, nep-ltv and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
https://research.stlouisfed.org/wp/2015/2016-025.pdf Full text (application/pdf)
http://dx.doi.org/10.20955/wp.2016.025 http://dx.doi.org/10.20955/wp.2016.025 (application/pdf)

Related works:
Journal Article: Training and Search On the Job (2024)
Working Paper: Training and Search On the Job (2016)
Working Paper: Training and Search On the Job (2015)
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:fip:fedlwp:2016-025

Ordering information: This working paper can be ordered from

DOI: 10.20955/wp.2016.025

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Scott St. Louis ().