One widely accepted conclusion in the human capital literature on training is that firms will finance only firm-specific training because it is non-transferable to other firms. Firms will not be willing to finance training in general (transferable) skills. In this paper it is argued that a...

The major premise of this paper is that potential recruiters do not possess much information on the extent and type of workers'on-the-job-training. Workers taken for trained might turn out to possess no, or very little, general training. Also, a worker recruited for a given job may possess the...