Article ID Journal Published Year Pages File Type
984504 Research in Economics 2007 9 Pages PDF
Abstract

I consider a duopsony model of a general skilled labour market. The source of the market power of the firms is the mobility cost of the workers. In the model general training is inefficient and the firms bear a share of the general training cost. If capital market imperfections prevent workers from investing in human capital, the imperfect competition in the skilled labour market compared with the perfect competition promotes general training. In order to remove the inefficiency of personnel training it is necessary to link together a minimum wage for skilled workers and loans to apprentices.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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