The existing literature on training is concerned with understanding the reasons why firms pay for the general skills of their workers, but without explaining which firms train which workers. This paper develops a theory that both explains the willingness of firms to pay for general training, and...

This paper argues that the prevalence of compensation systems which reward winners without explicitly identifying losers can be rationalized by workers` concern for relative payoffs. If the workers` participation constraints are binding, the firm must compensate its employees for the disutility...

We examine the shareholder wealth effects of takeover defenses by developing a model in which takeovers facilitate the implementation of technological innovations. In the rational expectations equilibrium of the model with explicit contracts, we show that takeover defenses are deployed to insure...

In human capital intensive industries where it is difficult to contract upon the training effort of skilled agents a socially suboptimal level of training may occur. We show how partnership organisations can overcome this problem by tying human and financial capital. Partnerships are opaque so...

Until 1970, the New York Stock Exchange prohibited public incorporation of member firms. After the rules were relaxed to allow joint stock firm membership, investment-banking concerns organized as partnerships or closely-held private corporations went public in waves, with Goldman Sachs (1999)...

We investigate wage and productivity profiles in the Ghanaian Manufacturing sector using matched firm and worker data. Following Medoff and Abraham (1980, 1981), we use performance appraisal as our measure of individual productivity. Controlling for a wide range of human capital variables,...

In this paper, we first present a summary of the literature dealing with the question of the existence of externalities of employer provided and funded training. Using French data, we then estimate the impact of this kind of training on wages, while paying special attention to the mobility after...

We develop a model of endogenous skill-biased technical change in developing countries.  The model reconciles wildly dispersed existing estimates of the elasticity of substitution between more and less educated workers.  It also produces an estimating equation for the elasticity, which allow...

In this paper, I study how an increase in the use of new work practices that involve multi-tasking has affected the returns to experience.  If each task in a job has a concave learning curve, then increasing the number of tasks may increase the returns to experience.  Using the Panel Study of...

Although a number of different models have been suggested for the process that brings workers and firms together in the labour market, none of these performs well in empirical studies of the aggregate matching function. Empirically, the most successful functional form is Cobb-Douglas, for which...