SIM, Seung-Gyu    Department   Aoyama Gakuin University  Department of International Economics, School of International Politics, Economics and Communication    Position   Professor
Language	English
Publication Date	2018/03
Type	Academic Journal
Peer Review	Peer reviewed
Title	Employer Incentives for Providing Informal On-the-Job Training in the Presence of On-the-Job Search
Contribution Type	Collaboration
Journal	Journal of Labor Research
Journal Type	Another Country
Publisher	Springer Link
Volume, Issue, Page	39(1),pp.22-40
Author and coauthor	Timothy Huegerich
Details	We analyze the provision of informal general training in a frictional labor market in which employers cannot commit to training levels and workers cannot commit to stay. We demonstrate that employers’ training decisions are driven by both an investment motive, to improve productivity, and a compensation motive, to increase employee retention. The investment motive decreases with higher wages, while the compensation motive increases. In our calibration exercises, the former dominates, which creates a negative relationship between wages and training. Furthermore, in contrast to recent studies missing the compensation motive, lessening the search frictions raises overall training levels due to enhanced compensation motives, approaching Becker’s result for a frictionless labor market.