Wage Differentiation via Subsidised General Training
V Bhaskar and
Steinar Holden ()
No 35/2002, Memorandum from Oslo University, Department of Economics
We provide a new explanation for why firms pay for general training in a competitive labor market. If firms are unable to tailor individual wages to ability, for informational or institutional reasons, they will pay for general training in order to attract better quality workers. The market provision of training may well exceed the first best level. Our explanation relies on wage compression within skill categories, while imperfect competition based explanations for firm subsidised general training rely on wage compression across skill categories.
Keywords: competitive labor market; general training (search for similar items in EconPapers)
JEL-codes: D82 J31 (search for similar items in EconPapers)
Pages: 26 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://www.sv.uio.no/econ/english/research/unpubli ... 002/Memo-35-2002.pdf (application/pdf)
Working Paper: Wage Differentiation via Subsidised General Training (2003)
Working Paper: Wage Differentiation via Subsidised General Training (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hhs:osloec:2002_035
Access Statistics for this paper
More papers in Memorandum from Oslo University, Department of Economics Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Mari Strønstad Øverås ().