TY  - RPRT
        AU  - Gersbach, Hans
AU  - Schmutzler, Armin
        TI  - The Effects of Globalization on Worker Training
        PY  - 2006/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2403
        UR  - https://www.iza.org/publications/dp2403
        AB  - We consider a three-stage game to examine how market integration affects firms’ incentives to provide general worker training. In stage 1, firms invest in productivity-enhancing training. In stage 2, they can make wage offers for each others’ workers. Finally, Cournot competition takes place. When two product markets become integrated, that is, replaced by a market with greater demand and more firms, training by each firm increases, provided the two markets are initially sufficiently concentrated. When barriers between less concentrated markets are eliminated, training is reduced. Integration increases welfare if it does not reduce training. However, for large parameter regions, welfare decreases if integration reduces training. We also show that opening product markets to countries with publicly funded training or cheap, low-skilled labor can threaten apprenticeship systems.
        KW  - oligopoly
KW  - human capital
KW  - general worker training
KW  - turnover
KW  - globalization
        ER  -