Hiring costs for skilled workers and the supply of firm-provided training

Blatter, Marc; Mühlemann, Samuel; Schenker, Samuel; Wolter, Stefan (2016). Hiring costs for skilled workers and the supply of firm-provided training. Oxford economic papers, 68(1), pp. 238-257. Oxford University Press 10.1093/oep/gpv050

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This article analyses how the costs of hiring skilled workers from the external labour market affect a firm’s supply of training. Using administrative survey data with detailed information on hiring and training costs for Swiss firms, we find evidence for substantial and increasing marginal hiring costs. However, firms can invest in internal training of unskilled workers and thereby avoid costs for external hiring. Controlling for a firm’s training investment, we find that a 1 standard deviation increase in average external hiring costs increases the number of internal training positions by more than half of a standard deviation.

Item Type:

Journal Article (Original Article)

Division/Institute:

07 Faculty of Human Sciences > Institute of Education > Sociology of Education
03 Faculty of Business, Economics and Social Sciences > Department of Economics

UniBE Contributor:

Blatter, Marc and Wolter, Stefan

Subjects:

300 Social sciences, sociology & anthropology > 370 Education
300 Social sciences, sociology & anthropology
300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

0030-7653

Publisher:

Oxford University Press

Language:

English

Submitter:

Eva Marina Zuberbühler

Date Deposited:

29 Jun 2017 13:11

Last Modified:

21 Sep 2017 01:49

Publisher DOI:

10.1093/oep/gpv050

BORIS DOI:

10.7892/boris.93165

URI:

https://boris.unibe.ch/id/eprint/93165

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