Discussion Paper Details
Please find the details for DP2845 in an easy to copy and paste format below:
Title: Is Wage Compression a Necessary Condition for Firm-Financed General Training?
Author(s): Alison L Booth and Gylfi Zoega
Publication Date: June 2001
Keyword(s): absolute- and relative wage compression and Firm-financed general training
Programme Area(s): Labour Economics
Abstract: It is well known that workers in Europe appear to receive more firm-provided general training than their counterparts in the United States. Moreover, there is considerable evidence that firms, in many cases, pay for the general training, contrary to the predictions of Becker (1964). In important recent contributions, Acemoglu and Pischke argue that it is through wage compression that unions and other labour-market institutions induce firms to invest in general training. We show that while wage compression can make firms more willing to pay for training, it does not constitute a necessary condition for firm-sponsored training.
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Booth, A and Zoega, G. 2001. 'Is Wage Compression a Necessary Condition for Firm-Financed General Training?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2845