This paper offers and tests a theory of training whereby workers do not pay for general training they receive. The … firm to provide training. We show that the model can lead to multiple equilibria. In one equilibrium quits are endogenously … high and as a result employers have limited monopsony power and are willing to supply only little training, while in …

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 …