In a dynamic labor market worker-firm matches dissolve frequently causing workers to separate and firms to look for replacements. A separation may be initiated by the worker (a quit) or the firm (a layoff), or may result from a joint decision. A dissolution of a worker-firm match may be...

In a dynamic labor market worker-firm matches dissolve frequently causing workers to separate and firms to look for replacements. A separation may be initiated by the worker (a quit) or the firm (a layoff), or may result from a joint decision. A dissolution of a worker-firm match may be...

This paper considers the optimal level of firm-specific training by taking into account the positive effect of training on the expected duration of workers current employment. In the framework of an efficiency wage model, a short expected job tenure represents a disamenity that reduces the...