Firm training and wage rigidity

Arbeitspapier

Although wage rigidity is among the most prominent subjects in modern economics, its effects on wage compression and firm training have thus far not been considered. This paper is trying to bridge this gap by using a simple two period model which can still by analyzed analytically. I am able to show that wage rigidity increases wage compression. However, contrary to previous work this is not sufficient to increase firms' training investments. The reason lies in the endogeneity of separations, which become more frequent.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 1452

Classification and Topics

• Classification: Wirtschaft ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Wage Level and Structure; Wage Differentials ; Personnel Economics: Training
• Subject: Human capital ; wage rigidity ; training ; Betriebliche Bildungsarbeit ; Lohnstruktur ; Betriebliche Bildungsarbeit ; Bildungsinvestition ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lechthaler, Wolfgang
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/24846
• Last update: 10.03.2025, 11:43 AM CET