Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/36770 
Year of Publication: 
2010
Series/Report no.: 
IZA Discussion Papers No. 4998
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper develops a two-period labor market model with imperfect information and on-the-job training, and uses data from National Longitudinal Survey of Youth 1979 Cohorts (NLSY79) to test its predictions. We find that training does not explain the positive relationship between employer size and wage. In addition, for industries that display size-wage premium, workers in large establishments are more likely to receive on-the-job training but their return to training is smaller. Our theory, substantiated by the new empirical evidence, suggests that it is not large firms, per se, but firms that hire better workers who are paying a wage premium.
Subjects: 
Imperfect information
sorting
on-the-job training
size-wage premium
JEL: 
D83
J31
Document Type: 
Working Paper

Files in This Item:
File
Size
286.28 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.