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Hiring Costs for Skilled Workers and the Supply of Firm-Provided Training

Marc Blatter, Samuel Muehlemann (), Samuel Schenker and Stefan Wolter
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Marc Blatter: Department of Economics, University of Bern

No 109, Economics of Education Working Paper Series from University of Zurich, Department of Business Administration (IBW)

Abstract: This paper analyzes how the costs of hiring skilled workers from the external labor market affect a firm's supply of training. Using administrative survey data with detailed information on hiring and training costs for Swiss firms, we find evidence for substantial and increasing marginal hiring costs. However, firms can invest in internal training of unskilled workers and thereby avoid costs for external hiring. Controlling for a firm's training investment, we find that a one standard deviation increase in external hiring costs increases the number of internal training positions by 0.7 standard deviations.

Keywords: hiring costs; apprenticeship training; firm-sponsored training (search for similar items in EconPapers)
JEL-codes: J23 J24 J32 J42 (search for similar items in EconPapers)
Date: 2012-02
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http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0109_lhwpaper.pdf (application/pdf)

Related works:
Journal Article: Hiring costs for skilled workers and the supply of firm-provided training (2016) Downloads
Working Paper: Hiring costs for skilled workers and the supply of firm-provided training (2016)
Working Paper: Hiring Costs of Skilled Workers and the Supply of Firm-Provided Training (2012) Downloads
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