On-the-job training and the effects of insider power
Suppose insiders use their market power to push up their wages, while entrants receive their reservation wages. How will employment be affected? In addressing this question, we focus on the role of on-the-job training. We show that an insider wage hike reduces recession-time employment but, in the p...
| Auteurs principaux: | , |
|---|---|
| Format: | Working paper |
| Langue: | English |
| Publié: |
ESRC Centre on Skills, Knowledge and Organisational Performance (SKOPE)
2003
|
| Sujets: |
| _version_ | 1826266945217888256 |
|---|---|
| author | Díaz-Vázquez, P Snower, D |
| author_facet | Díaz-Vázquez, P Snower, D |
| author_sort | Díaz-Vázquez, P |
| collection | OXFORD |
| description | Suppose insiders use their market power to push up their wages, while entrants receive their reservation wages. How will employment be affected? In addressing this question, we focus on the role of on-the-job training. We show that an insider wage hike reduces recession-time employment but, in the presence of on-the-job training can make insider wage hikes less detrimental to average employment (over booms and recessions). We show that when such training is sufficiently high and when economic shocks are sufficiently transient, an insider wage hike may even lead to a rise in average employment. |
| first_indexed | 2024-03-06T20:46:39Z |
| format | Working paper |
| id | oxford-uuid:36234c5f-9af5-4b90-b2a2-1b024a7f01b8 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T20:46:39Z |
| publishDate | 2003 |
| publisher | ESRC Centre on Skills, Knowledge and Organisational Performance (SKOPE) |
| record_format | dspace |
| spelling | oxford-uuid:36234c5f-9af5-4b90-b2a2-1b024a7f01b82022-03-26T13:35:57ZOn-the-job training and the effects of insider powerWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:36234c5f-9af5-4b90-b2a2-1b024a7f01b8EmploymentEconomicsEducationEconomics and educationEnglishOxford University Research Archive - ValetESRC Centre on Skills, Knowledge and Organisational Performance (SKOPE)2003Díaz-Vázquez, PSnower, DSuppose insiders use their market power to push up their wages, while entrants receive their reservation wages. How will employment be affected? In addressing this question, we focus on the role of on-the-job training. We show that an insider wage hike reduces recession-time employment but, in the presence of on-the-job training can make insider wage hikes less detrimental to average employment (over booms and recessions). We show that when such training is sufficiently high and when economic shocks are sufficiently transient, an insider wage hike may even lead to a rise in average employment. |
| spellingShingle | Employment Economics Education Economics and education Díaz-Vázquez, P Snower, D On-the-job training and the effects of insider power |
| title | On-the-job training and the effects of insider power |
| title_full | On-the-job training and the effects of insider power |
| title_fullStr | On-the-job training and the effects of insider power |
| title_full_unstemmed | On-the-job training and the effects of insider power |
| title_short | On-the-job training and the effects of insider power |
| title_sort | on the job training and the effects of insider power |
| topic | Employment Economics Education Economics and education |
| work_keys_str_mv | AT diazvazquezp onthejobtrainingandtheeffectsofinsiderpower AT snowerd onthejobtrainingandtheeffectsofinsiderpower |