Becker's theory of human capital predicts that minimum wages should reduce training investments for affected workers … because they prevent these workers from taking wage cuts necessary to finance training. In contrast, in noncompetitive labor … markets, minimum wages tend to increase training of affected workers because they induce firms to train their unskilled …

In the empirical literature on work experience, job tenure, training and earnings, only one previous study has made a … has made the distinction with respect to training. Yet it is reasonable to hypothesize that the distinction is important … independent effect. Similarly it is found that the distinction between training for current and previous occupations gives better …