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American Economic Journal: Applied Economics: Vol. 4 No. 2 (April 2012)
AEJ: Applied Volume. 4, Issue 2 |
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AEJ: Applied Forthcoming Articles
What Makes Firm-Based Vocational Training Schemes Successful? The Role of Commitment
Article Citation
Dustmann, Christian, and
Uta Schönberg. 2012. "What Makes Firm-Based Vocational Training Schemes Successful? The Role of Commitment."
American Economic Journal: Applied Economics,
4(2): 36-61.
DOI: 10.1257/app.4.2.36
DOI: 10.1257/app.4.2.36
Abstract
This paper studies a possible market failure in the firm-based vocational training market: training may be too complex to be specified in a contract so that it is legally enforceable, resulting in the inability of firms to commit to training provision. We present a model of firm provided training and show that training is substantially lower in the no commitment than in the commitment case. Thus, firm-based vocational training schemes are more successful in countries where commitment to training provision is more widespread. (JEL J24, L25, M12, M53)
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Authors
Dustmann, Christian (U College London)
Schönberg, Uta (U College London)
Schönberg, Uta (U College London)
JEL Classifications
J24: Human Capital; Skills; Occupational Choice; Labor Productivity
L25: Firm Performance: Size, Diversification, and Scope
M12: Personnel Management; Executive Compensation
M53: Personnel Economics: Training
L25: Firm Performance: Size, Diversification, and Scope
M12: Personnel Management; Executive Compensation
M53: Personnel Economics: Training
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