Booth, Alison L; Chatterji, Monojit - C.E.P.R. Discussion Papers - 1997
The paper examines the optimal level of training investment when trained workers are mobile, wage contracts are time …-consistent, and training comprises both specific and general skills. It is shown that, in the absence of a social planner, the firm … has ex-post monopsonistic power that drives trained workers’ wages below the socially-optimal level. The emergence of …