What makes firm-based vocational training schemes successful?

Abstract

"This paper studies a possible market failure in the firm-based vocational training market: training may be too complex to be specified in a contract so that it is legally enforceable, resulting in the inability of firms to commit to training provision. We present a model of firm provided training and show that training is substantially lower in the no commitment than in the commitment case. Thus, firm-based vocational training schemes are more successful in countries where commitment to training provision is more widespread." (Author's abstract, IAB-Doku) ((en))

Cite article

Dustmann, C. & Schönberg, U. (2012): What makes firm-based vocational training schemes successful? The role of commitment. In: American Economic Journal. Applied Economics, Vol. 4, No. 2, p. 36-61. DOI:10.1257/app.4.2.36