Workers will not pay for general on-the-job training if contracts are not enforceable. Firms may if there are mobility frictions. Private information about worker productivities, however, prevents workers who quit receiving their marginal products elsewhere. Their new employers then receive...

The literature on firm-financed general training after Becker tried to explain the firmst incentive to invest in general training by looking at labour market ftictions. These friction were not only taken to explain the existence of firm-financed general training but were -- besides the workers'...