Efficiency in a Search and Matching Model with Training Costs

No EMS_2011_09, Working Papers from Research Institute, International University of Japan

Abstract: This paper studies the efficiency of the search and matching model with training costs. I incorporate productivity enhancing firm-specific skill training into the search and matching model of Pissarides (2000). I demonstrate that while the decentralized economy can be efficient if training costs are not sunk at the time of wage determination, the decentralized economy is not efficient due to a hold-up problem if training costs are sunk.

Keywords: Search and matching model; Efficiency; Training (search for similar items in EconPapers)
JEL-codes: E24 J40 J64 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2011-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Journal Article: Efficiency in a search and matching model with training costs (2011)
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