The paper examines the optimal level of training investment when trained workers are mobile, wage contracts are time-consistent, and training comprises both specific and general skills. It is shown that, in the absence of a social planner, the firm has ex-post monopsonistic power that drives...

This paper offers and tests a theory of training whereby workers do not pay for general training they receive. The crucial ingredient in our model is that the current employer has superior information about the worker’s ability relative to other firms. This informational advantage gives the...

Canadian apprenticeship policy has recently turned to direct subsidies for participants, including a federal tax incentive for employers. Some assumptions underlying the employer subsidy are: that apprenticeship training is a principal contributor to the skilled trades labour supply; that...

The literature has not yet resolved whether the effect of macroeconomic fluctuations on training decisions is positive or negative. On the one hand, the opportunity cost to train is lower during downturns, and thus training should be counter-cyclical. On the other hand, a positive shock may be...

This paper uses firm level panel data of firm provided training to estimate its impact on productivity and wages. To this end the strategy proposed by Ackerberg, Caves and Frazer (2006) for estimating production functions to control for the endogeneity of input factors and training is applied....

We utilize an instrumental variable approach to analyse the effect that dropping out of high school has on 17 outcomes pertaining to wages, employment and subsequent skill acquisition for youths. Our analysis is based on the older cohort of the Youth in Transition Survey (YITS) for 2003, an...

The paper examines the extent of apprenticeships in the first job for a cohort of young men entering the labour market at age 16 in the late 1970s. The impact of the apprenticeship on employment duration and early labour market mobility is estimated. The data set used is the National Child...

Using longitudinal data from the British National Child Development Study, this paper examines gender differences in the determinants of work-related training. The analysis covers a crucial decade in the working lives of the 1958 birth cohort of young men and women – the years spanning the...

Il est largement prouvé que les travailleurs déplacés possédant une longue ancienneté professionnelle ont souvent des difficultés à retrouver un nouvel emploi et subissent en général une baisse de gains lorsqu'ils en trouvent un. Pour ceux ayant une très longue ancienneté, les pertes...

It is well-documented that workers displaced from long-tenure jobs tend to have difficulty finding new employment, and face even greater difficulty finding a job without suffering a substantial loss in earnings. Workers with significant prior tenure typically undergo substantial earnings losses,...