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 …

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 …

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. We show that when the assumption of … perfectly competitive labor markets underlying this theory is relaxed, minimum wages can increase training of affected workers …