Firm-Sponsored General Training in Frictional Labour Markets: An Empirical Analysis for Switzerland

Michael Gerfin ()
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Michael Gerfin: University of Bern

No 1077, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: According to the classical human capital theory general training is entirely financed by workers. This prediction is at odds with the empirical evidence. This observation inspired new theoretical models of training in frictional labour market. These frictions create incentives for firms to invest in general training. This paper tries to identify the sources of frictions in the Swiss labour market. The results indicate that internal wage floors may play an important role, especially for training in large firms. Overall, the empirical results support the predictions of the new training literature.

Keywords: training; wages; market imperfections; mobility (search for similar items in EconPapers)
JEL-codes: C33 I2 J31 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2004-03
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Citations: View citations in EconPapers (11)

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