Human capital and competition: strategic complementarities in firm-based training
Vocational training systems differ markedly between countries. A model of firm-based human capital investment predicts equilibria characterised by particular patterns of training and job-to-job mobility, consistent with observed cross-country differences. Incentives to invest in human capital are de...
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| Formato: | Working paper |
| Publicado em: |
University of Oxford
2012
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| _version_ | 1826264264596258816 |
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| author | Stevens, M |
| author_facet | Stevens, M |
| author_sort | Stevens, M |
| collection | OXFORD |
| description | Vocational training systems differ markedly between countries. A model of firm-based human capital investment predicts equilibria characterised by particular patterns of training and job-to-job mobility, consistent with observed cross-country differences. Incentives to invest in human capital are determined jointly with labour turnover and the intensity of competition between employers for skilled workers, and the dependence of labour market conditions on human capital leads to strategic complementarity between training decisions. Depending on the extent of market frictions and match heterogeneity, we may expect to see either equilibria characterised by general training, steep wage profiles and high mobility; or equilibria in which both general and specific investment may occur, but turnover is low and wage profiles are relatively flat. Multiple equilibria are possible, in which case high turnover equilibria generate higher welfare. |
| first_indexed | 2024-03-06T20:04:58Z |
| format | Working paper |
| id | oxford-uuid:289afd0a-c469-4f06-afb8-8bdaa0ac3e76 |
| institution | University of Oxford |
| last_indexed | 2024-03-06T20:04:58Z |
| publishDate | 2012 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:289afd0a-c469-4f06-afb8-8bdaa0ac3e762022-03-26T12:13:51ZHuman capital and competition: strategic complementarities in firm-based trainingWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:289afd0a-c469-4f06-afb8-8bdaa0ac3e76Bulk import via SwordSymplectic ElementsUniversity of Oxford2012Stevens, MVocational training systems differ markedly between countries. A model of firm-based human capital investment predicts equilibria characterised by particular patterns of training and job-to-job mobility, consistent with observed cross-country differences. Incentives to invest in human capital are determined jointly with labour turnover and the intensity of competition between employers for skilled workers, and the dependence of labour market conditions on human capital leads to strategic complementarity between training decisions. Depending on the extent of market frictions and match heterogeneity, we may expect to see either equilibria characterised by general training, steep wage profiles and high mobility; or equilibria in which both general and specific investment may occur, but turnover is low and wage profiles are relatively flat. Multiple equilibria are possible, in which case high turnover equilibria generate higher welfare. |
| spellingShingle | Stevens, M Human capital and competition: strategic complementarities in firm-based training |
| title | Human capital and competition: strategic complementarities in firm-based training |
| title_full | Human capital and competition: strategic complementarities in firm-based training |
| title_fullStr | Human capital and competition: strategic complementarities in firm-based training |
| title_full_unstemmed | Human capital and competition: strategic complementarities in firm-based training |
| title_short | Human capital and competition: strategic complementarities in firm-based training |
| title_sort | human capital and competition strategic complementarities in firm based training |
| work_keys_str_mv | AT stevensm humancapitalandcompetitionstrategiccomplementaritiesinfirmbasedtraining |