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Wage Differentiation via Subsidised General Training

Bhaskar, V and Holden, Steinar (2002) Wage Differentiation via Subsidised General Training. Working Paper. University of Essex, Department of Economics, Economics Discussion Papers, Colchester.


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We provide a new explanation for why firms pay for general training in a competitive labor market. If firms are unable to tailor individual wages to ability, for informational or institutional reasons, they will pay for general training in order to attract better quality workers. The market provision of training may well exceed the first best level. Our explanation relies on wage compression within skill categories, while imperfect competition based explanations for firm subsidised general training rely on wage compression across skill categories.

Item Type: Monograph (Working Paper)
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Users 161 not found.
Date Deposited: 28 Aug 2014 14:54
Last Modified: 28 Aug 2014 14:54

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