Does Poaching Distort Training?

S-Tier
Journal: Review of Economic Studies
Year: 2004
Volume: 71
Issue: 4
Pages: 1143-1162

Authors (2)

Espen R. Moen (BI Handelshøyskolen) Åsa Rosén (not in RePEc)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We analyse the efficiency of the labour market outcome in a competitive search equilibrium model with endogenous turnover and endogenous general human capital formation. We show that search frictions do not distort training decisions if firms and their employees are able to coordinate efficiently, for instance, by using long-term contracts. In the absence of efficient coordination devices there is too much turnover and too little investment in general training. Nonetheless, the number of training firms and the amount of training provided are constrained optimal, and training subsidies therefore reduce welfare. Copyright 2004, Wiley-Blackwell.

Technical Details

RePEc Handle
repec:oup:restud:v:71:y:2004:i:4:p:1143-1162
Journal Field
General
Author Count
2
Added to Database
2026-01-26