Although wage rigidity is among the most prominent subjects in modern economics, its effects on wage compression and firm training have thus far not been considered. This paper is trying to bridge this gap by using a simple two period model which can still by analyzed analytically. I am able to...

Using a unique survey database of 8265 firms from 25 transition economies, I find that lack of access to finance in general, and to bank credit in particular, is associated with significantly lower investment in on-the-job training. This effect is stronger in education-intensive industries and...

Firms may be reluctant to provide general training if workers can quit and use their gained skills elsewhere. "Training contracts" that impose a penalty for premature quitting can help alleviate this inefficiency. Using plausibly exogenous contractual variation from a leading trucking firm, we...

Firms may be reluctant to provide general training if workers can quit and use their gained skills elsewhere. "Training contracts" that impose a penalty for premature quitting can help alleviate this inefficiency. Using plausibly exogenous contractual variation from a leading trucking firm, we...

Extant literature documents a relationship between human resource management (HRM) practices and performance, but the mechanisms underlying this relationship are still not well understood. We develop a theoretical framework of the HRM-performance relationship fusing an employment systems...

A common assumption in literature dealing with the lifecycle profile of human capital is that individuals decide every period on the investment in their human capital, i.e., schooling and training. However, in many cases training is a decision made by the employer rather than the employee. This...

Do returns to training differ if training is accompanied by technological innovations at the workplace? We analyze this potential heterogeneity of returns based on panel data from Germany that provide a unique measure for individuals’ adoption of new technology at the workplace. In the...

Amidst the rise of remote work, we ask: what are the effects of proximity to coworkers? We find being near coworkers has tradeoffs: proximity increases long-run human capital development at the expense of short-term output. We study software engineers at a Fortune 500 firm, whose main campus has...

Do returns to training differ if training is accompanied by technological innovations at the workplace? We analyze this potential heterogeneity of returns based on panel data from Germany that provide a unique measure for individuals' adoption of new technology at the workplace. In the preferred...