Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24846
Authors: 
Lechthaler, Wolfgang
Year of Publication: 
2008
Series/Report no.: 
Kiel working paper 1452
Abstract: 
Although wage rigidity is among the most prominent subjects in modern economics, its effects on wage compression and firm training have thus far not been considered. This paper is trying to bridge this gap by using a simple two period model which can still by analyzed analytically. I am able to show that wage rigidity increases wage compression. However, contrary to previous work this is not sufficient to increase firms' training investments. The reason lies in the endogeneity of separations, which become more frequent.
Subjects: 
Human capital
wage rigidity
training
JEL: 
J24
J31
M53
Document Type: 
Working Paper

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