American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
What Makes Firm-Based Vocational Training Schemes Successful? The Role of Commitment
American Economic Journal: Applied Economics
vol. 4,
no. 2, April 2012
(pp. 36–61)
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)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.4.2.36Additional Materials
JEL Classification
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- L25 Firm Performance: Size, Diversification, and Scope
- M12 Personnel Management; Executive Compensation
- M53 Personnel Economics: Training
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