Firm-specific training

Felli, Leonardo and Harris, Christopher (2006) Firm-specific training. TE/04/473. Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science, London, UK.

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Abstract

This paper introduces two complementary models of firm-specific training: an informational model and a productivity-enhancement model. In both models, market provision of firm-specific training is inefficient. However, the nature of the inefficiency depends on the balance between the two key components of training, namely productivity enhancement and employee evaluation. In the informal model, training results in a proportionate increase in productivity enhancement and employee evaluation, and training is underprovided by the market. In the productivityenhancement model, training results in an increase in productivity enhancement but no change in employee evaluation, and training is overprovided by the market. In both models, turnover is inefficiently low.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://www2.lse.ac.uk/researchAndExpertise/Experts...
Additional Information:	© 2006 Leonardo Felli and Christopher Harris.
Library of Congress subject classification:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor
Journal of Economic Literature Classification System:	D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search; Learning; Information and Knowledge; Communication; Belief J - Labor and Demographic Economics > J4 - Particular Labor Markets > J41 - Contracts: Specific Human Capital, Matching Models, Efficiency Wage Models, and Internal Labor Markets C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C78 - Bargaining Theory; Matching Theory
Sets:	Research centres and groups > Financial Markets Group (FMG) Collections > Economists Online Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD) Departments > Economics Collections > LSE Financial Markets Group (FMG) Working Papers
Identification Number:	TE/04/473
Date Deposited:	28 Feb 2008
URL:	http://eprints.lse.ac.uk/3571/

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