Arbeitspapier

Institutions and training inequality

We analyze the interaction among important institutional variables in the labor market (firing costs, minimum wages and unemployment benefits) in determining firm-provided training. We find that the institutional interactions - specifically, their degree of complementarity and substitutability - depends on employees' abilities. On this account, the institutional interactions influence skills inequality. We derive how the influence of one of the institutional variables above is affected by other institutional variables with respect to inequality skills arising from firm-provided training. We derive several striking results, such as: (a) the minimum wage and unemployment benefits generate increasing skills inequality whereas firing costs generate diminishing skills inequality; (b) unemployment benefits and firing costs are complements in their effects on skills disequalization, (c) firing costs and the minimum wage are complements in their effects on skills equalization, and (d) unemployment benefits and the minimum wage are substitution in their effects on skills inequality.

Sprache
Englisch

Erschienen in
Series: Kiel Working Paper ; No. 1372

Klassifikation
Wirtschaft
Fiscal Policies and Behavior of Economic Agents: Firm
Human Capital; Skills; Occupational Choice; Labor Productivity
Thema
Skills Inequality
Institutions
Firm Training
Betriebliche Weiterbildung
Betriebliche Bildungsarbeit
Qualifikation
Bildungschancen
Kündigungsschutz
Mindestlohn
Arbeitslosenversicherung
Theorie

Ereignis
Geistige Schöpfung
(wer)
Lechthaler, Wolfgang
Snower, Dennis J.
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2007

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Lechthaler, Wolfgang
  • Snower, Dennis J.
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2007

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