In this paper we estimate, for the 1989-93 period in Belgium, the effect of vocational classroom training on the rate … of transition out of unemployment. We show that rationing of the demand for training increases the unemployment duration …-regional variation in the training capacities. During participation, the transition rate decreases by 27%. Afterwards it increases by 62 …

Standard economic theory predicts that firms will not invest in general training and will underinvest in specific … training. Empirical evidence, however, indicates that firms do invest in general training of their workers. Evidence from … laboratory experiments points to less underinvestment in specific training than theory predicts. We propose a simple model in …