We investigate the effect of institutions on efficiency of training markets. After setting up a theoretical institutional framework that shows how institutions affect efficiency, we apply this framework to the real world. An empirical analysis of institutions affecting training markets will...

Over the past decade, researchers have been increasingly concerned with the effects of training. Whereas Gary Becker stated that employers pay for specific training and employees for general training, it is often argued that employers provide general training as well and that this has a positive...