Failure in the training market may result from credit constraints and other capital market imperfections, deterring potential trainees, or labour market imperfections creating external benefits for firms. This paper presents a model of a training market affected by both problems, and examines...

Two sources of inefficiency in the provision of on-the-job training are examined: an externality between firms which arises if there is imperfect competition between firms in the labor market, and allocation inefficiency due to asymmetry of information about the value of the trained worker. The...

This paper explores the incentives faced by employers for supplying general training of the type given to craft apprentices. An investment model is developed in which the employer's return takes the form of reduced recruitment costs for skilled labor. An empirical model is derived and fitted to...