Training Contracts, Employee Turnover, and the Returns from Firm-sponsored General Training Article Swipe
Firms may be reluctant to provide general training if workers can quit and use their gained skills elsewhere. "Training contracts" that impose a penalty for premature quitting can help alleviate this inefficiency. Using plausibly exogenous contractual variation from a leading trucking firm, we show that two training contracts significantly reduced post-training quitting, particularly when workers are approaching the end of their contracts. Simulating a structural model, we show that observed worker quit behavior exhibits aspects of optimization (for one of the two contracts), and that the contracts increased firm profits from training and reduced worker welfare relative to no contract.
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- Language
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- http://www.nber.org/papers/w23247.pdf
- OA Status
- green
- Related Works
- 20
- OpenAlex ID
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Training Contracts, Employee Turnover, and the Returns from Firm-sponsored General TrainingWork title
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articleOpenAlex work type
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enPrimary language
- Publication year
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2017Year of publication
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2017-01-01Full publication date if available
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Mitchell Hoffman, Stephen V. BurksList of authors in order
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https://www.nber.org/papers/w23247.pdfDirect link to full text PDF
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YesWhether a free full text is available
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greenOpen access status per OpenAlex
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https://www.nber.org/papers/w23247.pdfDirect OA link when available
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Training (meteorology), Inefficiency, Business, Welfare, Turnover, Labour economics, Microeconomics, Economics, Management, Market economy, Meteorology, PhysicsTop concepts (fields/topics) attached by OpenAlex
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0Total citation count in OpenAlex
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20Other works algorithmically related by OpenAlex
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