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Financing On-The-Job Training: Shared Investment or Promotion Based System? Evidence from Germany

Year:    1997

Author:    Pannenberg, Markus

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 117 (1997), Iss. 4 : pp. 525–543

Abstract

Though the shared investment hypothesis of human capital theory, i.e. that employers and employees share the costs of and the return on investment in firm-specific human capital, is widely accepted, we know little about the empirical evidence. The paper shows that in German data (1984 - 1991) there is no empirical evidence for the shared investment hypothesis. Rather we observe that employers are able to protect one-sided investments against opportunistic bargaining. Moreover there is a positive correlation between the incidence of employer-supported on-the-job training and promotions within firms.

Journal Article Details

Publisher Name:    Global Science Press

Language:    Multiple languages

DOI:    https://doi.org/10.3790/schm.117.4.525

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 117 (1997), Iss. 4 : pp. 525–543

Published online:    1997-04

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    19

Author Details

Pannenberg, Markus

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