Institutional Frameworks and Labor Market Performance produces an in-depth analysis of the functioning of various labor market institutions in both the USA and Germany. Particular emphasis is given to the substantial differences between the US and Germany in the ways important areas are...

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...