search query: @author Acemoglu, D. / total: 25
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| Author: | Acemoglu, D. |
| Title: | Training and innovation in an imperfect labour market |
| Journal: | Review of Economic Studies
1997 : JUL, VOL. 64(3):220, p. 445-464 |
| Index terms: | TRAINING HUMAN CAPITAL INNOVATION LABOUR MARKETS |
| Language: | eng |
| Abstract: | This article analyses innovation and training decisions in a frictional labor market and offers two key results. Workers don't have the right incentives to invest in general training because they anticipate that part of the productivity gains created by training will be captured by their future employers. The inefficiency in training doesn't depend on an extreme form of incompleteness of contracts between a worker and his employer, nor does it require credit market imperfections. Also with competitive markets workers bear the full costs of general training, whereas with labour market frictions, firms may be willing to pay part of the costs of training. If there are also investment decisions in new technology complementary to the skills of the workers, then the inefficiency in training is increased and a multiplicity of equilibria emerges. |
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