Publication
Oct 2008
This paper addresses wage rigidity and its effects on wage compression and firm training. The paper uses a two period model and shows that wage rigidity increases wage compression. The author resolves that contrary to previous conclusions, this is not sufficient to increase firms' training investments. He explains that the reason lies in the endogeneity of separations, which has become more frequent.
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English (PDF, 39 pages, 361 KB) |
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Author | Wolfgang Lechthaler |
Series | Kiel Institute Working Papers |
Issue | 1452 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2008 Kiel Institute for the World Economy |