This paper tests the hypothesis that unions, through imposing wage floors that lead to wage compression, increase on …-the-job training. Our analysis focuses on Germany which provides an interesting context to test this hypothesis, due to its large scale … analysis, we first develop a model of firm-financed training. A novel feature of our model is that a unionised and non …

This paper tests the hypothesis that unions, through imposing wage floors that lead to wage compression, increase on …-the-job training. Our analysis focuses on Germany which provides an interesting context to test this hypothesis, due to its large scale … analysis, we first develop a model of firm-financed training. A novel feature of our model is that a unionised and non …

, while training temporary contracts are not affected by unions, volatility and their interplay. We argue that this occurs … because non-training temporary contracts can be used by firms as a buffer stock to cope with uncertainty and by unions to … highly volatile economic environment unions may be concerned about the weakening of their bargaining power associated with an …

We expand Acemoglu and Pischke's seminal model of training in imperfect labor markets by including the system of … collective wage bargaining and the components of firms' training costs. Thus we can adapt their model to institutional changes … of apprenticeship training by changing training procedures towards more training at the work place and thus by decreasing …

This paper tests the hypothesis that unions, through imposing wage floors that lead to wage compression, increase on …-the-job training. Our analysis focuses on Germany which provides an interesting context to test this hypothesis, due to its large scale … analysis, we first develop a model of firm-financed training. A novel feature of our model is that a unionised and non …

When labor markets are imperfectly competitive, firms may be willing to finance general training if the wage structure … is compressed, that is, if the increase of productivity after training is greater than the increase in pay. We propose a … novel way of testing this proposition, which exploits the variation in training incidence and in the training wage premium …

of training intensity. Second, firmspecific unions, through raising relative wages and reducing turnover, can increase … of the returns to general training and be willing to pay for it despite its general nature. However this outcome is not … efficient, in the sense that too few workers are trained and workers who are hired receive too little training. We consider how …

firm heterogeneity under centralised wage-setting, as unions internalise negative externalities of a wage increase for low …