Contributions

  • Pischke, Jörn-Steffen. - Contributor
  • National Bureau of Economic Research. - Contributor

Publication

1998 - National Bureau of Economic Research, Cambridge, MA, Massachusetts

Language

English

Word Count

6,250 words, Guess

Page Count

25 pages

Identifiers

Classifications

  • LCCHB1 .W654 no. 6357

Description

In the standard model of human capital with perfect labor markets, workers pay for general training. When labor market frictions compress the structure of wages, firms may invest in the general skills of their employees. The reason is that the distortion in the wage structure turns "technologically" general skills into "specific" skills. Labor market frictions and institutions, such as minimum wages and union wage setting, are crucial in shaping the wage structure, and thus have an important impact on training. Our results suggest that the more frictional and regulated labor markets in Europe and Japan may generate more firm-sponsored general training than the U.S.

Subjects

Series Statement

  • NBER working paper series -- working paper 6357
  • Working paper series (National Bureau of Economic Research) -- working paper no. 6357.

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