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 …-post monopsonistic power in wage determination. Local union-firm wage bargaining ensures that the post-training wage is set sufficiently …

This paper offers and tests a theory of training whereby workers do not pay for general training they receive. The … firm to provide training. We show that the model can lead to multiple equilibria. In one equilibrium quits are endogenously … high and as a result employers have limited monopsony power and are willing to supply only little training, while in …

This paper uses firm level panel data of firm provided training to estimate its impact on productivity and wages. To … endogeneity of input factors and training is applied. The productivity premium for a trained worker is estimated at 23%, while the … wage premium of training is estimated at 12%. Our results give support to recent theories that explain work related …