collective bargaining arrangements closed shops and relative pay this paper uses establishment level data to examine the impact on union nonunion pay differentials of the industrial relations setting in which bargaining takes place the pre entry closed shop is found to be of prime importance for the pay of both skilled and semiskilled manual workers for skilled workers and for semiskilled workers in larger establishments the differentials are found to be insignificantly different from zero in the absence of a pre entry closed shop copyright 1987 by royal economic society

a decomposition of training probabilities the determinants of workers training probabilities are analysed a distinction is made between the unconditional probability that a worker is employed by a firm that provides any training opportunities at all and the conditional probability that the worker receives training given that s he works for a firm that provides training for this analysis a censored version of the bivariate probit model is applied the results indicate that establishment size industry dummies type of schooling age and experience affect only the unconditional probability whereas the type of labour contract working hours and job level affect only the conditional probability years of formal schooling affect both probabilities more highly educated workers are both more likely to work for training providing firms and given that they work for such a firm to be selected for training programmes

long term attachments and long run firm rates of return long term attachments between workers and firms are common numerous studies have examined worker returns to tenure but little is known of firm returns to firm worker matches yet these attachments represent a human capital asset quasi held by the firm which is not captured by traditional accounting measures of firm assets firms with large quasi holdings of human capital will have higher measured return on assets other things equal analysis of data on 250 large manufacturing firms supports the view that firms profit from long term attachments with their workers consequently unmeasured human capital assets contribute to the explanation of persistence in measured long run excess profits across firms

research on the motion picture industry state of the art and new directions off the beaten track away from theatrical release the motion picture industry has been subject of extensive academic research over the last decades however most scholars focused on the u s theatrical motion picture market the number of research activities regarding even more profitable release windows such as home video or television has been substantially lower although international distribution is essential for a motion picture project to break even there has been little significant re search on most other markets this paper aims at summarizing the current state of research on the motion picture industry particularly from marketing and management perspective revealing research gaps and proposing recommendations for future research endeavors therefore a three pillar scheme is developed to systemize previous findings research on intraorganizational decision making contractual relationships between national stakeholders and international market competition are differentiated since these insights are mainly derived from u s theatrical exhibition they can hardly be applied to other markets and exhibition windows thus potential research areas are identified to expand knowledge of posttheatrical and international markets

cheap tuesdays and the demand for cinema many movie markets are characterised by extensive uniform pricing practices hampering the ability to estimate price elasticities of demand australia presents a rare exception with most cinemas offering cheap tuesday ticket prices we exploit this feature to estimate a random coefficients discrete choice model of demand for the sydney region in 2007 we harness an extensive set of film cinema and time dependent characteristics to build a rich demand system our results are consistent with a market expansion effect from the practice of discounted tuesday tickets and suggest that cinemas could profit from price dispersion by discounts based on observable characteristics

the impact of the threat of bankruptcy on the structure of compensation this article builds and tests a model of the impact of a firm s bank ruptcy probability on its propensity to offer deferred compensation schemes using 1983 current population survey data we find that ceteris paribus lower failure rates raise the incidence of pensions for nonunion workers outside manufacturing further we find some evidence that among those workers with a pension a higher industry failure rate steepens tenure earnings profiles jointly controlling for union nonunion and pension no pension selectivity such a result suggests that workers discount implicit promises of future earnings increases by the likelihood that the firm will not survive

relational contracts limited liability and employment dynamics this paper studies a relational contracting model in which the agent is protected by a limited liability constraint the agent s effort is his private information and affects output stochastically we characterize the optimal relational contract and compare the dynamics of the relationship with that under the optimal long term contract under the optimal relational contract the relationship is less likely to survive and the surviving relationship is less efficient in addition relationships always converge to a steady state under the optimal long term contract but they can cycle among different phases under the optimal relational contract

education training and employability two hypotheses are tested 1 education and training increase the employability of workers at other tasks within the firm and reduce the need for help from supervisors when workers encounter small problems and 2 greater employability and problem solving capability increase wages the empirical results show that greater employability and problem solving capability are independent from each other formal work related training increases employability workers in jobs requiring no induction training are less employable at other jobs or departments both general and specific human capital increase the ability of workers to solve problems on their own greater employability does not increase wages male workers who solve problems on their own earn more than men who need help from others the effects of human capital variables on employability and problem solving capability do not differ between and men and women however it is found that the ability to solve problems on one s own has a pay off for men but

an empirical study of uniform and differential pricing in the movie theatrical market abstractmovies vary widely in appeal star power cost and other elements and therefore each might be expected to charge a different price multiplexes however typically charge the same price for all movies except for such premium formats as 3d a choice that has puzzled managers and researchers because of data limitations minimal empirical work has directly addressed this issue in hong kong however prices vary both within and across multiplexes using daily ticket prices and attendance by theater and movie the authors empirically examine the potential gains from differentiated movie specific pricing as well as the increasingly common two tier 2d 3d uniform pricing as compared with a full uniform pricing strategy in which a theater charges the same price for all its movies their results show that differential pricing leads to higher profits than the two tier uniform pricing practice but that the improvement is limited in contrast the gains are substantial when compared with the full uni

at the movies the economics of exhibition contracts i introduction the literature on profit sharing stresses asymmetric information profit sharing occurs when a party has private information that cannot be credibly revealed or when a party s actions cannot be observed economists avoid taste based explanations such as risk sharing stigler and becker 1977 and other factors that may lead to sharing such as measurement costs we describe a real world sharing contract that is widely used the movie exhibition contract and argue that asymmetric information is not the main cause of sharing two explanations based on difficulties with forecasting revenue fit the facts better the first is that movie distributors studios or independent distributors and exhibitors theater owners are both risk averse and exhibition contracts are designed to share risk the second is that the sharing rules accompanied by ex post adjustments economize on measurement costs transaction costs and long term relationships also affect contractual practices we use an original data set of 2 769 exhibition contracts to inform our models and test hypotheses the data includes all contracts involving 13 theaters owned by wehrenberg theatres a prominent st louis exhibitor over roughly two years our models explain the sharing that occurs and the conditions that lead to adjustments and our findings may be relevant for other contracting environments our explanations for the features of exhibition contracts complement those of de vany and eckert 1991 and de vany and walls 1996 who emphasize that difficulties with forecasting demand necessitate the use of short term contingency rich contracts some other work on nonexhibition aspects of the movie business also compares asymmetric information models to alternatives ravid 1999 tests and rejects a model of asymmetric information at the project selection stage ravid and basuroy 2004 consider risk aversion at the project selection stage chisholm 1993 1997 and weinstein 1998 compare principal agent models to alternatives in studies of contracts between studios and talent in the next subsection we describe the basic features of modern exhibition contracts after that we describe how the sharing rules evolved over time and argue that asymmetric information does not explain the sharing rules section ii contains our models section iii contains our empirical work and section iv concludes the modern movie exhibition contract the unit of analysis is a single movie in a single theater a theater is a building that may contain multiple auditoriums although there is typically a boilerplate contract between each distributor and exhibitor that specifies general conditions that apply to all individual contracts terms such as sharing rules and run lengths vary by movie and theater a typical run ends after four to eight weeks but the run may be adjusted after early revenues are observed and holdover clauses may be used to extend the run as long as revenue is sufficiently high de vany and eckert 1991 and de vany and walls 1996 attribute adjustable runs to imprecise forecasts we focus on explaining the peculiar revenue sharing rule that is common in modern contracts some contracts are aggregate deals in which each side s percentage share remains fixed throughout the run but most are sliding scale deals in a sliding scale deal each week the distributor gets the maximum of two possible payments 1 90 of the movie s weekly ticket revenue over the house nut which is a flat payment to the exhibitor 2 a floor payment some percentage of the weekly ticket revenue that typically declines according to a sliding scale as the weeks go by perhaps 70 in the first week 60 by the third week and as low as 30 at the end of the run if the parties anticipate that revenue might peak in the second or later weeks which can occur when the movie opens before a holiday weekend for example the contract includes a best weeks clause that ensures that the high floor payments are associated with the high demand weeks

the source of the new canadian job stability patterns this paper explores the causes of the recent change in the canadian job stability patterns using the labour force survey master files 1977 2008 i find that what was previously seen as a cyclical increase in job stability is actually a secular change results indicate that the ageing of the workforce the increased educational attainment and the increased labour force attachment of women play important roles in explaining the aggregate job stability patterns that emerge for education the declining importance of low educated workers is the key and not the rising importance of workers with university degrees with respect to gender the evidence points towards a cohortbased explanation surprisingly the changing industry structure has little explanatory powers finally only the rising educational attainment matters for newer jobs leaving a large part of the increase still unexplained

job matching and women s wage tenure profile recently researchers have challenged the validity of the dominant theories of wage growth claiming that the observed positive relation between wages and tenture is an artefact of omitted job match quality in sharp contrast to the human capital theory job match theory implies that women s wages are not directly affected by their discontinuous labour force participation using samples of women workers from three data sets the authors estimate structural models of the wage tenure relation which control directly for job match quality and find evidence of a strong positive relation between wages and tenture

collusion and price rigidity we consider an in nitely repeated bertrand game in which prices are publicly observed and each rm receives a privately observed i i d cost shock in each period we focus on symmetric perfect public equilibria sppe wherein any punishments are borne equally by all rms we identify a tradeoff that is associated with collusive pricing schemes in which the price to be charged by each rm is strictly increasing in its cost level such fully sorting schemes offer efficiency bene ts as they ensure that the lowest cost rm makes the current sale but they also imply an informational cost distorted pricing and or equilibrium path price wars since a higher cost rm must be deterred from mimicking a lower cost rm by charging a lower price a rigid pricing scheme where a rm s collusive price is independent of its current cost position sacri ces efficiency bene ts but also diminishes the informational cost for a wide range of settings the optimal symmetric collusive scheme requires i the absence of equilibrium path price wars and ii a rigid price if rms are sufficiently impatient however the rigid pricing scheme cannot be enforced and the collusive price of lower cost rms may be distorted downward in order to diminish the incentive to cheat when the model is modi ed to include i i d public demand shocks the downward pricing distortion that accompanies a rm s lower cost realization may occur only when current demand is high

auctions with constrained information blind bidding for motion pictures toward explaining why movie exhibitors have sought legislation requiring distributors to trade screen films before soliciting bids a simulation of a nash equilibrium in an auction suggests that without previews bidders may suffer losses i n expected utility this supports the hypothesis that risk aversion a nd competition render exhibitors unable to reduce their bids enough t o compensate fully for the dearth of information an error components model is used to analyze a unique industry dataset the results conf irm that a component of the bid is lower raising mean return while the variance of return is greater for blindly licensed films copyright 1988 by mit press

toward a theory of vacancies we attempt to further characterize the search strategies of the employer in the article we discuss how characteristics of the employer or conditions that the employer faces affect the optimal search strategies and the probability of filling a vacancy in each period semiparametric and parametric methods are used to estimate hazard rates of filling vacancies the results suggest that for the given sample of vacancies the general form of the hazard function is nonmonotonic additionally the results suggest that those employers who have advance notice of the vacancy may search longer than those employers who do not

the dynamics of job separation the case of federal employees summary in this paper we develop a model of workers quit decisions using panel data on a sample of us federal government employees we use maximum likelihood techniques to determine how much of the observed decline in quits with job tenure is a result of declining individual quit propensities state dependence rather than dynamic sample self selection heterogeneity the latter is found to be much more important than the former the effects of relative federal government wages and other variables on quits are also estimated the results are useful for analysing federal compensation policies

worker effort decisions and efficient gender specific wage tenure profiles i introduction during the past thirty years women have increased their labor force participation female labor market intermittency has decreased and women s total labor market experience and years of tenure with the current employer have increased what these trends imply about the evolution of the gender gap in wages depends in part on gender differences in returns to tenure it is therefore surprising that economists have all but ignored the empirical finding that women have higher returns to tenure than do men over a significant portion of their working lives one reason why this finding has been ignored or treated as an anomaly may be the lack of theoretical constructs which predict an inverse gender gap in returns to tenure several labor market models predict that women should have lower returns to tenure than men human capital theory offers the most frequently cited explanation of flatter earnings profiles for female workers according to human capital theory gains from specialization and exchange lead to one household member specializing in home production and the other in market work since only women bear children historically the outcome of the exchange has been that women have specialized in home production indeed all surveys of time use indicate that women spend on average two to three times as long on housework as men as a consequence of this allocation women anticipate intermittent labor force participation and fewer years overall in the labor force than men this pattern too is borne out in national surveys which invariably find shorter average tenure and fewer total years of labor market experience for women than for men women typically have shorter completed job spells as well hall 1982 table 5 presents evidence that the gender gap in completed job duration is quite large he estimates that 63 8 percent of men but only 49 6 percent of women hold jobs with eventual tenure of at least five years with 37 3 and 15 1 percent of men and women respectively holding jobs with eventual tenure of at least twenty years because of the greater intermittency and shorter anticipated work history for women than men women will find it optimal to acquire less human capital than men 1 lesser quantities of general human capital tends to flatten both the observed earnings experience profile and the observed earnings tenure profile two factors contribute to this pattern first skills deteriorate during periods out of the labor market as in mincer and polachek 1974 which flattens the earnings experience profile for women relative to men second women anticipating discontinuous work histories select into occupations with flatter earnings profiles to minimize the penalty to labor force withdrawals as in polachek 1981 the effects of firm specific human capital on gender differences in wage tenure profiles vary across models for example kuhn 1993 constructs an elegant game theoretic model of gender differences in training and wages if women have a higher exogenous exit rate than men in equilibrium they will be placed in jobs with lower levels of firm specific training with a positive relation between training and productivity and a common share rate of the costs and benefits of specific training for men and women the wage tenure profiles of men will be steeper than those for women in contrast becker and lindsay 1994 argue that firm specific human capital leads to higher returns to tenure for women than men becker and lindsay assume that men and women have the same level of firm specific training however women have greater variance in their opportunity cost of remaining with a firm and so are more likely than men to separate inefficiently by giving women a greater share of both the costs and benefits of firm specific human capital through a steeper wage tenure profile firms reduce undesirable turnover although human capital arguments dominate the literature on gender differences in the labor market other models of wage growth predict flatter wage tenure profiles for women

the determinants of work related training in britain in 1995 and the implications of employer size this study uses a familiar set of variables to characterize the determinants of training based around individual characteristics qualifications and workplace characteristics however it goes further by using data drawn from a recent quarter of the uk labour force survey and thus contains an up to date and extensive set of core variables the dependent variable used covers three subgroups those who have never been offered training by their current employer those who have been offered but did not receive training in the last three months and those workers who received training within the last three months the hypothesis that large employers not only provide more work related training but that they are also more willing to train workers with characteristics that indicate a lower probability of obtaining a return on any investment outlay is tested this was confirmed especially for male workers along with a range of results that mostly accord with previous studies into the determinants of uk em

a dynamic analysis of educational attainment occupational choices and job search this article examines career choices using a dynamic structural model that nests a job search model within a human capital model of occupational and educational choices wage growth occurs in the model because workers move between firms and occupations as they search for suitable job matches and because workers endogenously accumulate firm and occupation specific human capital simulations performed using the estimated model reveal that both self selection in occupational choices and mobility between firms account for a much larger share of total earnings and utility than the combined effects of firm and occupation specific human capital

job training in u s organizations we draw hypotheses about the factors related to company provision offormal job training programs from diverse theoretical perspectives and research findings using data from the 1991 national organizations survey we analyze a sample of 688 establishments to estimate multivariate models the relationships between employer provided job training and organizational size unionization and workforce composition are reduced or eliminated in most multivariate equations employer provided training is most extensive in establishments with elaborate internal structures that operate in complex market environments the job training practices of u s employers affect employees from the executive suite to the loading dock enhancing skills from basic literacy to interpersonal sensitivity a new training ideology is rapidly eclipsing the traditional segmented pattern a pattern in which universities educate the professionals and technicians companies prime the executives unions apprentice workers in the skilled trades and government prepares the disadvantaged facing competitive world economic pressures that have eroded america s market positions employers are now using job training as one means of coping with changes fostered by technological innovation market competition organizational restructuring and demographic shifts although training is an integral part of the employer employee relationship direct evidence about company training practices based on representative samples of diverse employing organizations is almost nonexistent most previous research has drawn on either self reported labor force surveys or highly restricted samples of organizations typically skewed to very large firms we examine hypotheses about employer provided job training practices in the early 1990s using a national survey of u s work organizations

changes in the japanese employment system in the two lost decades the authors re examine developments in two key elements of the japanese employment system seniority based wages and lifetime employment using recent microdata from the basic survey on wage structure in contrast with previous studies the authors find evidence that these practices are eroding for seniority wages for example they find that the age wage profile has become flatter in recent years especially for employees in the middle and final phase of their careers and for lifetime employment a clear downward trend has developed since the early 2000s in the share of lifetime employees among younger university educated workers the findings suggest that a growing share of educated younger workers choose to leave indefinite contract jobs due to the poor prospects for seniority based wage progression while older workers choose to stay in their present job despite stagnating wages because it may be more difficult for them to find alternative employment

on reputation a microfoundation of contract enforcement and price rigidity we study the impact of reputational incentives in markets characterised by moral hazard problems social preferences have been shown to enhance contract enforcement in these markets while at the same time generating considerable wage and price rigidity reputation powerfully amplifies the positive effects of social preferences on contract enforcement by increasing contract efficiency substantially this effect is however associated with a considerable bilateralisation of market interactions suggesting that it may aggravate price rigidities surprisingly reputation in fact weakens the wage and price rigidities arising from social preferences thus in markets characterised by moral hazard reputational incentives unambiguously increase mutually beneficial exchanges reduce rents and render markets more responsive to supply and demand shocks

measuring market power in the ready to eat cereal industry the ready to eat cereal industry is characterized by high concentration high price cost margins large advertising to sales ratios and numerous introductions of new products previous researchers have concluded that the ready to eat cereal industry is a classic example of an industry with nearly collusive pricing behavior and intense nonprice competition this paper empirically examines this conclusion in particular i estimate price cost margins but more importantly i am able empirically to separate these margins into three sources i that which is due to product differentiation ii that which is due to multi product firm pricing and iii that due to potential price collusion the results suggest that given the demand for different brands of cereal the first two effects explain most of the observed price cost margins i conclude that prices in the industry are consistent with noncollusive pricing behavior despite the high price cost margins leading firms are able to maintain a portfolio of differentiated products and influence the perceived product quality it is these two factors that lead to high price cost margins

earnings losses and labor mobility over the life cycle an extensive empirical literature has documented that workers with high tenure suffer large and persistent earnings losses when they get displaced we study the reasons behind these losses in a tractable search model with a life cycle dimension endogenous job mobility worker and match heterogeneity the model reconciles key characteristics of the u s labor market large average transition rates a large share of stable jobs and the earnings losses from displacement we decompose the earnings losses and find that only 50 result from skill losses endogenous reactions and selection account for the remainder our findings have important implications for the welfare costs of displacement and labor market policy

the impact of trade union membership on training in britain in order to measure the union non union training differential in britain a recursive model of training participation and union membership is estimated using data taken from the 1989 labour force survey the results show a positive and significant effect of union membership on training participation in small establishments this is consistent with the hypothesis that any negative impact on employer provided training that might have arisen from the union wage mark up is outweighed by a positive influence exerted by unions through the exercise of collective voice and or reductions in labour turnover by contrast in establishments with 25 or more workers unions have no significant impact on training

sources of training and their impact on wages using data from the national longitudinal survey of youth from 1986 to 1990 the author investigates the wage impact of various sources of training among them company training programs apprenticeships business schools vocational and technical institutes correspondence courses and seminars outside the workplace time spent in training of whatever kind apparently did not affect 1990 wage levels the incidence of two kinds of training however company training and seminars outside work was positively related to wage levels as well as to wage change between 1986 and 1990 that is workers who undertook such training enjoyed higher wages than those who did not time spent in vocational schools was also positively associated with wage change though not with 1990 wage levels the other forms of training had no apparent impact on either wage levels or wage change

training and worker effort a signalling perspective this paper analyzes the interaction between firms investment in general skills training and workers incentives it shows that when a firm has an informational advantage over its workers its provision of free general skills training can serve as a signal that there will be a long term relationship between the firm and its workers this signal induces the workers to exert more effort in learning firm specific skills which enhances the firm s profits in contrast with most of the existing literature the model implies that firms may provide free general skills training even if there is no labour market friction ce memoire analyse l interaction entre l investissement des entreprises dans l acquisition d habiletes generales de leurs employes et les incitations des travailleurs a fournir un effort on montre que quand une firme a un avantage informationnel sur ses travailleurs le fait de fournir gratuitement de la formation qui permette aux employes d acquerir des habiletes generales peut servir de signal qu il va y avoir une relation a long terme entre la firme et ses travailleurs ce signal incite les travailleurs a investir plus d effort dans l acquisition d habiletes specifiques a la firme ce qui augmente les profits de l entreprise ce modele en porte a faux par rapport au gros de la litterature existante suggere que les entreprises peuvent fournir gratuitement de la formation permettant aux employes d acquerir des habiletes generales meme s il n y a pas de friction dans le marche du travail

the importance of lifetime jobs differences between union and nonunion workers the authors use cps micro data to derive estimates of retention rates and eventual lifetime tenure probabilities for union and nonunion workers although both groups enjoy a considerable degree of

market structure jobs and productivity observations from jamaica the purpose of this paper is to study the structure of the formal labor market in jamaica emphasis is placed upon the key institutional features of labor markets as they affect income and employment determination training and labor quality labor management conflict and industrial organization in particular a distinction is drawn between those jobs principally in the informal sector where easy entry and work sharing are the principal determinants of income earning opportunities and those which are protected by formal sector internal labor markets this distinction is critical for understanding how employment and productivity are affected by economic change and by institutional forces at the workplace

human capital and unemployment dynamics why more educated workers enjoy greater employment stability why do more educated workers experience lower unemployment rates and lower employment volatility empirically these workers have similar job finding rates but much lower and less volatile separation rates than their less educated peers we argue that on the job training being complementary to formal education is the reason for this pattern using a search and matching model with endogenous separations we show that investments in match specific human capital reduce incentives to separate but leave the job finding rate essentially unaffected the model generates unemployment dynamics quantitatively consistent with the data finally we provide novel empirical evidence supporting the mechanism studied in the paper this article is protected by copyright all rights reserved

legal minimum wages and employment duration 1 introductionthe effect of a legal minimum wage on employee turnover is an important consideration when evaluating the effectiveness of a minimum wage policy if an increase in the minimum wage results in greater turnover then firms hiring costs are increased and the direct benefit to workers who are paid the minimum wage may be lessened a reduction in turnover on the other hand would mean more stability for employers and workers though access to minimum wage jobs may be reduced for job seekers despite the recent proliferation of studies on the effects of legal minimum wages their impact on turnover has received relatively little attention from economists this may be due to the fact that much of the literature focuses on the teen labor market where there is more churning than in the adult labor market gardecki and neumark 1998 the fact remains however that a significant proportion of workers hired at the minimum wage are adults and the effects of the minimum wage onthe turnover hazard are understudied 1standard economic theory suggests that a price floor such as a minimum wage results in fewer transactions and in rents for those suppliers who manage to sell in the context of the labor market this means workers in minimum wage jobs may be expected to receive rents and therefore may be less likely to quit another possible consequence of a minimum wage arises from imperfect information in the labor market combined with heterogeneity among workers and jobs prior to the start of an employment relationship the worker does not know all the relevant aspects of the job and the employer does not know all the important characteristics of the worker as a result in the absence of a mandated minimum wage job applicants may use wage offers to infer information about the nonpecuniary aspects of jobs thereby facilitating the matching process a binding minimum wage compresses the wage distribution so that a single wage is associated with a larger array of jobs this means that the wage offer becomes a poor indicator of a job s nonwage characteristics which leads to a higher proportion of poor matches and consequently more turnover this paper uses data on young men and women in the 1988 1994 rounds of the national longitudinal survey of youth nlsy to estimate the relationship between the minimum wage and the turnover hazard the extent to which the minimum wage binds varies across states both because of differences in state laws and because of differences in wage levels across states we exploit this variation to estimate turnover hazards as a function of the ratio of the nominal minimum wage to the state median wage this variable measures the extent to which the minimum wage binds we find some evidence that in states where the minimum wage is low relative to the state s median wage men hired at the minimum wage have lower employee initiated separation hazards than other low wage workers as the minimum wage rises relative to the prevailing median wage that is as the minimum wage becomes more binding men hired at the minimum wage are increasingly likely to leave their jobs at any given duration when the minimum wage is high relative to the median wage we find that men hired at the minimum wage have significantly higher employee initiated separation hazards than other low wage workers we interpret these findings as evidence that while rents may accrue to minimum wage workers the job matching process is undermined when the minimum wage binds our results apply to the men in our sample but not to the women indeed for women we find no connection between employment duration and the starting wage rate though we do uncover some evidence that for women in low wage jobs employment duration is more elastic with respect to the presence of family friendly fringe benefits than it is for men the paper proceeds as follows the next section explores the possible reasons minimum wages would affect turnover and discusses the existing empirical and theoretical research on this topic

the aggregate effects of sectoral reallocations abstract can a one time permanent change in the fundamentals behind the sectoral composition of the economy prompt an aggregate downturn can this downturn be non negligible even if one uses us data to determine the relative size of gross vs net job flows and the importance of job creation costs can one consider the military build down of the 1990s as a plausible cause for the 1990 1991 recession do sectoral reallocations generate responses that are qualitatively similar to productivity shocks we use a variant of the mortensen pissarides 1994 review of economic studies 61 397 415 job creation destruction model calibrate it to us labor market data and run experiments that suggest one can answer yes to all these questions

measuring the business stealing cannibalization and market expansion effects of entry in the u s motion picture exhibition market using a large and comprehensive theater level database covering over 18 billion in theater revenues over a five year period i document the extent and nature of business stealing revenue cannibalization and market expansion that occurred during the height of the 1990 s boom in movie theater construction

investment in general training the role of information and labour mobility following the seminal work of becker i964 it is widely accepted in the literature that firms will be unwilling to finance training which workers may use in other firms this paper takes issue with this prediction and suggests that firms will frequently share in the cost of such general training 1 becker argues that a firm which pays for the training of workers in skills of potential use to other firms will lose these workers since other firms bear none of the costs of general training they can attract a worker with such training by outbidding the firm which trained him recognising this absence of property rights over an investment in general training firms will refuse to provide it hence if general training is to take place the trainee will have to pay for it if potential trainees are unwilling or unable to pay general training will not take place a shortage in general training is likely to emerge this may be especially pronounced in developing countries 2 in contrast the outlook for

is job stability declining in germany evidence from count data models the macro evidence of increased adjustment pressure since the early 1970s suggests that job mobility should have increased hence retrospective and spell data from the german socio economic panel are combined in order to test the hypothesis that job stability for german workers declined between 1974 and 1994 using count data regression models in which we control for labour market experience various demographic factors and occupation we find that job stability did not decrease but if anything increased between 1974 and 1994 our finding suggests that labour market inflexibility is an important factor in explaining the european unemployment problem

retailer entry conditions and wholesaler conduct the theatrical distribution of motion pictures abstract i add to the empirical literature on vertical contracting and wholesaler conduct by using retailer entry conditions to infer unobserved choice variables and equilibrium responses to prices and advertising after estimating the us demand for theatrical motion pictures from 1990 96 i apply these techniques to compare observed outcomes to predictions under various distributor conduct hypotheses while several caveats apply results indicate that the hypothesis of competition among distributors fails to describe advertising levels or aggregate payments of theaters to studios the hypothesis of some collusion among distributors however matches the data fairly well

the economics of academic tenure a relational perspective abstract this analysis draws on recent work in analytical labor economics that shows the value of stable long term employment relationships tenure is conventionally portrayed as an economically wasteful institution justified if at all by its non economic value the present analysis identifies ways in which an extended probationary period followed by a lifetime guarantee of a well defined job is well adapted to features of academic work the most important of these are a the difficulty of monitoring faculty work performance and the highly specific character of b faculty jobs and c the training those jobs require the probation tenure system is contrasted with term contracting case studies support the theoretical inferences about the drawbacks of term contracting in an academic setting

do wages rise with job seniority many previous studies have found a strong positive effect of job seniority tenure on wages this paper re examines the evidence using a simple instrumental variables scheme to deal with the fact that tenure is likely to be related to unobserved individual and job characteristics that affect the wage we use the variation of tenure over a given job match as the principal instrumental variable for tenure the variation in tenure over the job is uncorrelated by construction with the fixed individual and job match specific components of the error term of the wage equation our main finding is that the partial effect of tenure on wages is small and that general labour market experience and job shopping account for most wage growth over a career the strong cross section relationship between tenure and wages is due primarily to heterogeneity bias prior researchers see mincer and jovanovic 1981 bartel and borjas 1981 borjas 1981 cline 1979 and mellow 1981 and many others have established that job seniority has a strong positive relationship with wage rates in a cross section or a cross section time series of individuals in this paper we re evaluate the evidence concerning the partial effects on wages of job seniority tenure and total labour market experience the extent to which wages rise with tenure is important for several reasons first and foremost the wage tenure profile is a fundamental question about the structure of earnings over careers second the wage tenure profile is a key determinant of the extent to which the earnings power of individuals is tied to specific jobs and it is important for assessment of the losses suffered by displaced workers hamermesh 1984 third evidence that wages rise with job tenure has been used to explain the decline in quits with tenure since the wage growth on the current job lowers the probability that the worker will locate a superior alternative a growing theoretical literature surveyed in parsons 1984 has taken the evidence of a strong wage tenure profile at face value and sought to provide an explanation for the relationship the most prominent explanation is the theory of specific human capital oi 1962 becker 1962 mincer 1974 parsons 1972 kuratani 1973 and hashimoto 1980 in which the growth of wages with tenure holding experience constant is attributed to the worker s share of investments in firm specific skills more recently lazear 1981 has presented a supervision model of wage growth in which firms defer compensation as a means of inducing workers not to shirk freeman 1977 and harris and holmstrom 1982 provide an explanation for wage growth based on an insurance motive salop and salop 1976 nickell 1976 and guasch and weiss 1982 present adverse selection models of wage growth in which firms use a wage tenure profile as a

persistence of employment fluctuations a model of recurring job loss standard models of employment fluctuations cannot reconcile the unemployment rate s remarkable persistence with the high job finding rates found in worker flows data a matching model emphasizing high hazard rates among newly formed firm worker matches can resolve this shortcoming in the model matches are experience goods consequently newly employed workers face higher hazard rates following a job loss workers may experience several short lived jobs before finding stable employment at an aggregate level an initial burst of job loss precipitates a steady flow of recurring job loss a simulation shows that this recurring job loss can account for the fact that the unemployment rate remains elevated for as much as 4 or 5 years following an initial jump intuitively the labour market frictions associated with the difficult and time consuming process of matching unemployed workers with appropriate jobs represent an appealing way to enhance conventional dynamic general equilibrium models of economic fluctuations that generally exhibit very little internal propagation of business cycle shocks 1 nevertheless although conventional matching models such as the canonical mortensen and pissarides 1994 model successfully explain many other important features of the labour market they fail to explain the high degree of persistence observed in the u s unemployment rate the primary reason for this failure is that data on labour market flows show that unemployed workers actually find jobs quite quickly therefore following a shock that triggers a burst of job loss the high job finding rate implies that the unemployment rate in these models returns quite rapidly back toward its average level this represents a significant obstacle to the notion that frictions in the labour market account for much of the propagation of business cycle shocks this paper asserts that existing matching models fail to capture an important feature of the labour market that can reconcile the dramatic persistence of the unemployment rate with the evidence of high job finding rates specifically although unemployed workers find jobs quickly the newly found jobs often last only a short time after an initial job loss a worker may experience several short lived jobs before settling into more stable employment this recurring job loss slows the pace at which the unemployment rate returns to its normal level following an adverse shock

employment tenure and earnings profiles in japan and the united states comments the relationship between job tenure and annual earnings in japan has received considerable attention from social scientists examining employment contracts and the japanese compensation system in their widely cited article masanori hashimoto and john raisian 1985 using data for 1980 showed that japanese men have greater job tenure than comparable workers in the united states and that the earnings of japanese men rise more rapidly with increased tenure they found that an additional year of tenure increases earnings in both small and large firms in japan more than does an additional year of general market experience their results for the united states indicate that general market experience increases earnings more than an additional year of job tenure the 1970 s and 1980 s were a period of substantial change in japanese labor markets due to the rapid aging of the population and the restructuring of the economy following the oil crisis the present analysis extends the work of hashimoto and raisian by estimating earnings equations for japanese men for the years 1971 1976 1981 and 1986 specifically we wish to investigate whether hashimoto and raisian s findings have been stable over time or whether changes in the labor market have altered the importance of tenure relative to total labor market experience in the japanese labor market i changes in the labor market

the importance of lifetime jobs in the u s economy though the u s labor market is justly notorious for high turnover and consequent high unemployment it also provides stable near lifetime employment to an important fraction of the labor force this paper investigates patterns of job duration by age race and sex with the following major conclusions 1 the typical worker today is holding a job which has lasted or will last about eight years over a quarter of all workers are holding jobs which will last twenty years or more sixty percent hold jobs which will last five years or more 2 the jobs held by middle aged workers with more than ten years of tenure are extremely stable over the span of a decade only twenty to thirty percent come to an end 3 among workers aged thirty and above about forty percent are currently working in jobs which eventually will last twenty years or more three quarters are in jobs which will last five years or more 4 the duration of employment among blacks is just as long as among whites even though the jobs held by blacks are worse in almost every other dimension they are no more unstable than those held by whites 5 women s jobs are substantially shorter than men s on the average only about a quarter of all women over the age of thirty are employed in jobs which will last over twenty years whereas over half of men over thirty are holding these near lifetime jobs this abstract was borrowed from another version of this item

incentive compatible long term contracts and job rationing this article presents a model in which markets for long term contractual employment coexist with spot markets for labor assuming the absence of third party enforcement wage contracts are required to be incentive compatible as a consequence contract wages yield higher expected utility to the worker than spot market wages so that in equilibrium contractual long term jobs are rationed

you paid for the skills now keep them tuition reimbursement and voluntary turnover does investing in employees marketable skills reduce turnover this study uses insights from human capital theory to explain how general skill development and promotion relate to voluntary turnover data from 9 439 salaried employees of a large manufacturer show that participation in tuition reimbursement reduces turnover while employees are in school voluntary turnover increases when individuals earn graduate degrees but is significantly reduced if they are subsequently promoted

unemployment and the demand for retraining an econometric analysis this paper describes and estimates a human capital model of whether unemployed workers seek retraining and the timing of an application in an unemployment spell the authors find that the probability of seeking retraining declines with age after twenty seven years with being attached to noncontracting industries with greater contentment in unemployment compared with last job and with union membership applications are increased by formal qualifications cse o a level and decreased by vocational training relative to no qualifications almost half the unemployed had sought retraining and this was largely complete after nine months below the mean interrupted unemployment duration copyright 1991 by royal economic society

the evolution of job stability in canada trends and comparisons with u s results using data from the 1976 2001 canadian labour force survey we examine the stability of currently held jobs and find no period long drop in job stability however job stability declined across the 1980s and rose across the 1990s for workers with less than one year of tenure when 1987 and 1995 are compared it can be seen that job stability was steady in canada but fell slightly in the united states with the difference concentrated among medium tenured workers we suggest that this difference was due to a slower recovery in canada in the 1990s which caused canadian workers to be less mobile jel classification j63 l evolution de la stabilite des emplois au canada tendances et comparaisons avec les resultats aux etats unis en utilisant les donnees de l enquete sur la population active pour la periode de 1976 a 2001 l auteur examine la stabilite des emplois detenus pour le moment et trouve qu il n y a pas eu de chute de la stabilite des emplois en longue periode cependant la stabilite des emplois a chute dans les annees 1980 et cru dans les annees 1990 pour les travailleurs qui detenaient leur emploi depuis moins d un an si l on compare 1987 et 1995 la stabilite des emplois se maintient au canada mais chute un peu aux etats unis la difference est concentree dans le groupe de travailleurs qui ne detenaient leur emploi que depuis une periode moyennement longue on suggere que les differences entre les deux pays sont attribuables a une reprise economique plus lente au canada dans les annees 1990 qui aurait rendu les travailleurs canadiens moins mobiles

labor economics and the psychology of organizations this essay is a discussion of how economists are attempting to understand institutions within the organizations of the labor market the institutions and issues discussed include mandatory retirement discontinuous jumps in wages pay compression rights of tenure up or out hierarchies timing of raises promotions and evaluations the existence of partnerships the use of bonuses vs penalties and pay as a motivator

vertical relationships between manufacturers and retailers inference with limited data in this paper different models of vertical relationships between manufacturers and retailers in the supermarket industry are compared demand estimates are used to compute price cost margins for retailers and manufacturers under different supply models when wholesale prices are not observed the purpose is to identify the set of margins compatible with the margins obtained from estimates of cost and to select the model most consistent with the data among non nested competing models the models considered are 1 a simple linear pricing model 2 a vertically integrated model and 3 a variety of alternative strategic supply scenarios that allow for collusion non linear pricing and strategic behaviour with respect to private label products using data on yogurt sold in several stores in a large urban area of the u s the results imply that wholesale prices are close to marginal cost and that retailers have pricing power in the vertical chain this is consistent with non linear pricing by the manufacturers or high bargaining power of the retailers

employer size and labor turnover the role of pensions the well documented lower labor turnover in large firms than in smaller firms has been cited as evidence that large firms pay workers above their opportunity wage this study investigates whether t

sex segregation and sectors an analysis of gender differences in returns from employer changes sweet james 1973 women in the labor force new york seminar press vanek joann 1974 time spent in housework scientific american 231 116 20 1980 household work wage work and sexual equality pp 275 91 in sarah f berk ed women and household labor beverly hills ca sage walker k and m woods 1976 time use a measure of household production of family goods and services washington d c american home economics association

the impact of pension benefits on the distribution of earned income using standard measures of income inequality and detailed pension benefit information on participants in the 1983 survey of consumer finances scf the authors investigate how pension benefits affected the distribution of earned income the results suggest that private pensions increased annual income inequality relative to inequality observed in the distribution of wage income by only about 2 among all employed individuals but by 21 among unionized workers further analysis indicates that private pensions raised annual income inequality primarily by increasing the rate of return to tenure possibly through pension backloading setting accruals to grow when earnings rise near retirement and the increasing incidence of pensions with age private pensions had little effect on estimates of the distribution of expected lifetime income but the addition to the analysis of social security benefits public pensions strongly reduced inequality in that distribution a renewed interest in the distribution of income has developed recently as new evidence suggests that income inequality has worsened over the past twenty years researchers suggest several reasons for rising inequality including an increase in the incomes of well educated men relative to other groups for example juhn murphy and pierce 1993 demographic changes resulting from the entrance of the baby boom generation into the work force lawrence 1982 and a sectoral shift away from manufacturing and toward the ser

employment tenure job expectancy and earnings profile in japan the purpose of this study is to examine the relationships between employment tenure and earnings profile in japan since the japanese labour market has recently experienced substantial changes it is natural for the japanese employment and compensation system to be influenced by such changes in this study the changes that have happened to the japanese employment and compensation system in recent years have been considered empirically by focusing on the relationships between employment tenure and earnings profiles to do this a forward looking variable called expected job tenure or job expectancy is introduced and the effects of it on earnings profile

aggregate demand idle time and unemployment this paper develops a model of unemployment fluctuations the model keeps the architecture of the barro and grossman 1971 general disequilibrium model but replaces the disequilibrium framework on the labor and product markets by a matching framework on the product and labor markets both price and tightness adjust to equalize supply and demand there is one more variable than equilibrium condition on each market so we consider various price mechanisms to close the model from completely flexible to completely rigid with some price rigidity aggregate demand influences unemployment through a simple mechanism higher aggregate demand raises the probability that firms find customers which reduces idle time for firms employees and thus increases labor demand which in turn reduces unemployment we use the comparative statics predictions of the model together with empirical measures of quantities and tightnesses to re examine the origins of labor market fluctuations we conclude that 1 price and real wage are not fully flexible because product and labor market tightness fluctuate significantly 2 fluctuations are mostly caused by labor demand and not labor supply shocks because employment is positively correlated with labor market tightness and 3 labor demand shocks mostly reflect aggregate demand and not technology shocks because output is positively correlated with product market tightness

seasonality in the u s motion picture industry the observed seasonality of box office revenues reflects both seasonality in underlying demand for movies and seasonality in the number and quality of available movies i separately identify these aspects by estimating weekly demand for movies using movie fixed effects a long panel of movies weekly revenues and restrictions on their decay pattern i find that the estimated seasonality in underlying demand is much smaller and slightly different from the observed seasonality of sales the biggest movies are released at times when demand is highest amplifying the underlying seasonality price rigidities in the industry may facilitate this amplification effect

trade unions and training practices in british workplaces the authors use british establishment level data from the 1991 employers manpower and skills practices survey emsps and individual level data from the autumn 1993 quarterly labour force survey qlfs to investigate the links between training provision and workplace unionization both the probability of receiving training and the amount of training received are found to have been substantially higher in unionized than in nonunion workplaces the authors view these results as showing that trade unions can play an important role in developing and boosting skill formation in britain

macroeconomic determinants of wage adjustments in white collar occupations t here is no professional consensus about the process of aggregate wage inflation a spectrum of opinion exists between the following extreme poles 1 that wages are determined instantaneously in markets where participants have rational expectations and can anticipate in their behavior the long run consequences of any consistent pattern of macro policy making and 2 that wages are determined largely by institutional forces including considerations of equity normal historical wage patterns union strength and current bargaining conditions 2 adherents of these polar positions have little respect for wage adjustment equations of the phillips 1958 or phelps 1967 friedman 1968 variety in which wages are related structurally to aggregate unemployment rates these adjustment equations occupy a middle ground in the spectrum and are currently used in large scale econometric models to explain how the effects of a change in demand are distributed into real and price components between the poles are several alternative justifications of wage unemployment relationships among these are the following views that wages are determined as in 1 above except for the existence of long run contracts 3 that the determination of expectations about future prices can be fairly approximated by a distributed lag on past prices 4 that it is past prices rather than expectations of future prices that are important 5 and that economic conditions are but one of a set of factors to be included in the current bargaining conditions that determine wages 6 which of these views best describes the process of wage determination is an empirical question but the question is quite complicated and does not appear to be capable of resolution through a single conclusive test many issues are involved simultaneously and no one has been able to find a set of workable assumptions that can be agreed upon by all as being a sensible way to proceed the question of wage determination continues to divide macroeconomic opinion more than any other single issue this paper reports results of empirical work on wage equations in which a strategy of disaggregation has been followed it is part of a larger project to estimate the dependence of the natural rate of unemployment on the distributions of the supply and demand for labor according to location and occupation as an estimation strategy disaggregation can avoid problems of identification and could in principle provide a way to distinguish among the many competing hypotheses in this area in practice the disagreements are so fundamental and the possible tests so limited that the results can be offered as no more than an extension of the wage equation literature rather than as a resolution of the issue of whether wage equations should be treated as structural relations or of even greater ambition what those relations might be the extension provided follows the direction of baily and tobin 1977 1978 who hypothesized that the rate of wage change in a single labor force group should depend on the unemployment rate of that group and its wage relative to the wages of other groups the results are interesting for several reasons first the wage data that are used in these tests come from a survey not previously used in the estimation of aggregate wage equations the data are from the national survey of professional administrative technical and clerical pay patc 7 this survey is conducted annually by the bureau received for publication september 18 1981 revision accepted for publication may 4 1982 the university of wisconsin the author wishes to thank gregory krohn and bruce chapman for their excellent research assistance helpful comments were received from paul gertler and the participants at a seminar at the national commission for employment policy this research was supported by grant number 99 0 2289 50 11 from the national commission for employment policy and contract number 20 06 08 11 from the employment and training administration u s department of labor see for example lucas 1973 and sargent and wallace 1975 2see dunlop 1977 3see phelps and taylor 1977 and fischer 1977 4mcnees 1979 provides a way to distinguish this position from the one in the subsequent phrase 5 see okun 1978 for a summary of studies of this kind 6see hicks 1955 and 1974 pp 59 85 bureau of labor statistics 1980

the cost of business cycles and the stabilization value of unemployment insurance this paper o ers a new perspective on why labor market policies aimed at reducing the cost of business cycles may be warranted and how such policies can be designed in order to improve welfare to this end we develop a quantitative dynamic equilibrium model to illustrate how the contractual structure of the labor market may hide signi cant undiversi ed wage risk induced by aggregate uctuations the environment analyzed is such that the only imperfectly diversi ed risk workers bear is the risk of losing their job when the market for new contracts is depressed when we t the model to replicate the amount of wage variation estimated from micro data we obtain estimates of the potential value of stabilization policies that are substantially larger than those found in the literature we use this framework to examine several policy issues and in particular to show why state contingent unemployment insurance may dominate non contingent unemployment insurance schemes 2001 elsevier science b v all rights reserved jel classixcation e32 j41

job tenure and job mobility in britain using work history data from the british household panel survey the authors examine job mobility and job tenure over the period 1915 90 british men and women held an average of five jobs over the course of their work lives and half of all lifetime job changes occurred in the first ten years separation hazards were higher for more recent cohorts implying an increase in job instability as jobs accumulated average tenure lengthened but the proportion of involuntary separations increased for both men and women the rise in job instability was particularly marked in the lowest occupational classification in general job insecurity was greater for men than women

pensions bonding and lifetime jobs a well known if underappreciated finding in the mobility literature is that turnover is much lower in jobs covered by pensions than in other jobs this could result from capital losses for job changes created by most benefit formulas the tendency of turnover prone individuals to avoid jobs covered by pensions or higher overall compensation levels in such jobs a switching bivariate probit model of pension coverage and turnover is developed to estimate the effect of each of these factors the results show that capital losses are the main factor responsible for lower turnover in jobs covered by pensions but self selection and compensation levels also play an important role this is the first direct evidence that bonding is important for understanding long term employment relationships

wage variability in the 1970s sectoral shifts or cyclical sensitivity the recent debate questioning whether unemployment in the 1970s represents sectoral adjustment or cyclical variation is expanded to examine comparable causes of real wage variability using panel study of income dynamics panel data real wages respond more to persistent sectoral shocks than cyclical shocks in the 1970s making recent estimates of procyclical wage variability appear weak in perspective employing a model of endogenous sector specific individual skills older workers earning economic rents are shown to have the greatest wage response to sectoral shocks these results are consistent with the hypothesis that short run cyclical shocks may be met with hours adjustment as specified in implicit or explicit contracts but that persistent shocks require wage adjustment copyright 1989 by mit press

insiders outsiders and nominal wage contracts while the consequences of nominal wage contracts have been rather thoroughly analyzed there is no generally accepted theory of why such contracts prevail in this paper i argue that the distinction between insiders and outsiders is important for understanding nominal wage contracts since most employment fluctuations take the form of fluctuations in hiring insiders are normally not affected by them since prices are primarily determined by costs demand shocks have small effects on real wages thus insiders have little incentive to change to more complicated contracts with rigid nominal wages nominal demand shocks have large effects on the employment opportunities of outsiders but outsiders have little influence on labor contracts

careers guidance psychometric testing and unemployment amongst young people an empirical analysis for northern ireland psychometric tests continue to form an important part of careers guidance for young people of school leaving age throughout the uk in the existing literature there is little evidence about the impact of testing on subsequent labour market success this paper presents a quantitative analysis of the effect of testing in northern ireland on young people s subsequent experiences of unemployment and long term unemployment between the ages of 16 and 18 on account of the sample selection problem standard single equation estimates of the effects of testing are likely to give biased results and so the bivariate probit model is used in the estimation the results suggest that although testing is not having an adverse impact it is not having a statistically significant positive effect this may be attributable to some aspects of test administration in northern ireland which in many cases seems to fall short of recommended guidelines

demand and supply dynamics for sequentially released products in international markets the case of motion pictures we develop an econometric model to study a setting in which a new product is launched first in its domestic market and only at a later stage in foreign markets and where the product s performance demand and availability supply are highly interdependent over time within and across markets integrating literature on international diffusion success breeds success trends and the theatrical motion picture industry the focus of the empirical analysis we develop a dynamic simultanenous equations model of the drivers and interrelationship of the behavior of consumers audiences and retailers exhibitors our findings emphasize the importance of considering the endogeneity and simultaneity of audience and exhibitor behavior and challenge conventional wisdom on the determinants of box office performance which is predominantly based on modeling frameworks that fail to account for the interdependence of performance and availability specifically we find that variables such as movie attributes and advertising expenditures which are usually assumed to influence audiences directly mostly influence revenuesindirectly namely through their impact on exhibitors screen allocations in addition consistent with the idea that the buzz for a movie is perishable we find that the longer is the time lag between releases the weaker is the relationship between domestic and foreign market performance an effect mostly driven by foreign exhibitors screen allocations

long term wage fluctuations with industry specific human capital exploiting long term interindustry demand shifts this article provides evidence that 1 industry level wages do not respond to industry demand conditions 2 at the industry level the employment of young workers responds more to demand shifts than does the employment of experienced workers and 3 the postdisplacement wages of displaced workers are strongly affected by demand in their predisplacement industries these findings are consistent with a model in which worker s investments in industry specific skills pose a barrier to interindustry labor mobility and wages do not respond to spot labor market conditions

the role of off the job vs on the job training for the mobility of women workers the transition from school to work is typically a period in which many young workers experience a wide range of different jobs and experience some of their most rapid wage growth over their working life robert hall 1982 has estimated that the first 10 years of an individual s working career will include approximately two thirds of all lifetime job changes robert topel and michael ward 1988 found that over half of young male new entrants held six or more jobs over the first 10 years of their work experience only one young male worker in twenty held a single job for 10 years in their sample all of this suggests that young workers early years in the labor market involve several employment transitions the purpose of this paper is to examine for young workers in their first years of work the determinants of leaving an employer in particular this paper focuses on the role of different types of training on the probability of leaving an employer in previous work 1990 i have examined the impact of private sector training on the determination of wages and wage growth of young workers and reached the following conclusions first formal company provided onthe job training on jt appears to be highly firm specific in the united states and therefore is not portable from employer to employer company provided training raises wages in the current job but has no effect on the wages earned in subsequent employment second formal off the job training off jt received from for profit proprietary institutions has little effect on the wages earned on the current job but it does raise the expected wage in subsequent employment finally there are important differences by race gender and education level in the probability of receiving different types of formal training and in the impact this training has on wages and wage growth these findings have several implications for the impact of training on mobility one implication is that if company provided training is primarily firm specific then the probability of leaving an employer should decline if a young worker has experienced some on jt an additional implication is that if a worker participates in an off jt program it appears that the worker should be more likely to leave the current employer in this case off jt allows a young worker to change career paths and find a better match using data from the national longitudinal survey youth nlsy cohort this paper examines in detail the factors that influence the probability of new entrants leaving their first job including the differential effects of company provided training apprenticeships and training from for profit proprietary institutions

training opportunities in monopsonistic labour markets this paper studies the empirical relationship between the extent of monopsonistic power observed in occupational labour markets and the training opportunities available to workers in those markets