An Overview of the Theoretical Framework

Giorgia Brunello, Pietro Garibaldi, Etienne Wasmer

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Abstract

    Investments in human capital are central factors in economic performance and growth. When tastes and technologies are changing rapidly, human capital investments are important for maintaining high levels of competitiveness and employment. Without a workforce that is continually acquiring new skills, it is difficult to reap all the returns from technological progress. This chapter discusses one particular component of human capital - training, which refers to work-related training received while in employment. The orthodox human capital theory is revisited, along with the challenges hurled against it. The principal hypotheses regarding training are outlined and predictions as to who pays for general training and the returns to training (at both the training firms and at subsequent firms) are summarized. The impact of asymmetric information on the predictions of the orthodox human capital model is also considered, along with the effects of trade unions, minimum wages, product market regulation, and the tax system.

    Original languageEnglish (US)
    Title of host publicationEducation and Training in Europe
    PublisherOxford University Press
    ISBN (Electronic)9780191705786
    ISBN (Print)9780199210978
    DOIs
    StatePublished - May 17 2007

    Fingerprint

    Theoretical framework
    Prediction
    Human capital
    Technological progress
    Human capital investment
    Economic performance
    Trade unions
    Product market
    Human capital model
    Economic growth
    Factors
    Tax system
    Competitiveness
    General training
    Minimum wage
    Workforce
    Human capital theory
    Market regulation
    Asymmetric information

    Keywords

    • Education
    • European union
    • Labour markets
    • Trade unions
    • Wages
    • Workplace training

    ASJC Scopus subject areas

    • Economics, Econometrics and Finance(all)

    Cite this

    Brunello, G., Garibaldi, P., & Wasmer, E. (2007). An Overview of the Theoretical Framework. In Education and Training in Europe Oxford University Press. https://doi.org/10.1093/acprof:oso/9780199210978.003.0010

    An Overview of the Theoretical Framework. / Brunello, Giorgia; Garibaldi, Pietro; Wasmer, Etienne.

    Education and Training in Europe. Oxford University Press, 2007.

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Brunello, G, Garibaldi, P & Wasmer, E 2007, An Overview of the Theoretical Framework. in Education and Training in Europe. Oxford University Press. https://doi.org/10.1093/acprof:oso/9780199210978.003.0010
    Brunello G, Garibaldi P, Wasmer E. An Overview of the Theoretical Framework. In Education and Training in Europe. Oxford University Press. 2007 https://doi.org/10.1093/acprof:oso/9780199210978.003.0010
    Brunello, Giorgia ; Garibaldi, Pietro ; Wasmer, Etienne. / An Overview of the Theoretical Framework. Education and Training in Europe. Oxford University Press, 2007.
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