Lochner, Lance; Heckman, James; Cossa, Ricardo - National Bureau of Economic Research (NBER) - 2002
This paper investigates the impact of wage subsidies on skill formulation. We analyze two prototypical models of skill formation: (a) a learning-by-doing model and (b) an on-the-job training model. We develop conditions on the pricing of jobs under which the two models are equivalent. In general...