structure of wages and investment in general training
By: Daron Acemoglu, Jörn-Steffen Pischke.
Contributors: Pischke, Jörn-Steffen.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 6357; Working paper series (National Bureau of Economic Research) -- working paper no. 6357.
Publisher: National Bureau of Economic Research
Published: 1998
Place of publication: Cambridge, MA
Language: eng
Number of pages: 25
Subjects: Employees -- Training of -- Mathematical models.; Human capital -- Mathematical models.; Labor market -- Mathematical models.; Wages -- Mathematical models.; Labor supply -- Mathematical models.
Description: In the standard model of human capital with perfect labor markets, workers pay for general training. When labor market frictions compress the structure of wages, firms may invest in the general skills of their employees. The reason is that the distortion in the wage structure turns "technologically" general skills into "specific" skills. Labor market frictions and institutions, such as minimum wages and union wage setting, are crucial in shaping the wage structure, and thus have an important impact on training. Our results suggest that the more frictional and regulated labor markets in Europe and Japan may generate more firm-sponsored general training than the U.S.
Notes: "January 1998."

JEL no. J24, J31, J41.

Includes bibliographical references (p. 23-25).

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