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Formation et effort de travail : une approche en termes de signalisation .
Author(s) -
Fan C. Simon,
Wei Xiangdong
Publication year - 2010
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2010.01585.x
Subject(s) - signalling , training (meteorology) , incentive , investment (military) , perspective (graphical) , business , labour economics , skills management , industrial organization , microeconomics , economics , marketing , computer science , physics , artificial intelligence , politics , meteorology , political science , law
This paper analyzes the interaction between firms’ investment in general skills training and workers’ incentives. It shows that when a firm has an informational advantage over its workers, its provision of free general skills training can serve as a signal that there will be a long‐term relationship between the firm and its workers. This signal induces the workers to exert more effort in learning firm‐specific skills, which enhances the firm's profits. In contrast with most of the existing literature, the model implies that firms may provide free general skills training even if there is no labour market friction.