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    Do quits cause under-training?

    Booth, A.L. and Zoega, Gylfi (1999) Do quits cause under-training? Oxford Economic Papers 51 (2), pp. 374-386. ISSN 0030-7653.

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    A recent finding in the training literature is that there will be under-investment in skills if there is a positive quit rate, training is at least partially transferable, and there is imperfect competition in the labour market. We explore the conditions under which this under-investment result might be reversed. In economies characterised by uncertainty about future productivity, we show that a higher quit rate may increase the number of workers trained, by making firms wait less for information about future productivity before training new workers. At low quit rates, this offsets all of the under-investment effect.


    Item Type: Article
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Depositing User: Sarah Hall
    Date Deposited: 01 Dec 2020 18:47
    Last Modified: 02 Aug 2023 18:06


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