The Costs and Benefits of Workplace Training

Giorgia Brunello, Pietro Garibaldi, Etienne Wasmer

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Abstract

    Efficient provision requires that the marginal private and social benefits of training be equal to marginal private and social costs. Employers in imperfectly competitive labour markets are willing to bear the costs of general training if the increase in productivity after training is higher than the increase in wages. Since costs and returns to workplace training play an important role in both, it is natural to focus on the effects of training on wages and productivity, and training costs. While there is an extensive literature on the social returns to schooling, little is known on the size of externalities associated with training. The extensive literature that has documented the relation between human capital and income, both at the individual and at the national level, leaves little doubt that investments in human capital are crucial for economic well being. Many of these investments take place both in the household and in the educational system but substantial investment in human capital takes place after entry into the labour market. However, most of the existing literature that considers returns to human capital has focused on schooling.

    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

    Costs and benefits
    Workplace training
    Human capital
    Costs
    Labour market
    Productivity
    Wages
    Social benefits
    Educational system
    Employers
    Household
    Income
    Returns to schooling
    Economic well-being
    Externalities
    Social costs
    General training
    Private benefits
    Social returns
    Schooling

    Keywords

    • European education
    • Human capital
    • Rates of return
    • Schooling
    • United States
    • Workplace training

    ASJC Scopus subject areas

    • Economics, Econometrics and Finance(all)

    Cite this

    Brunello, G., Garibaldi, P., & Wasmer, E. (2007). The Costs and Benefits of Workplace Training. In Education and Training in Europe Oxford University Press. https://doi.org/10.1093/acprof:oso/9780199210978.003.0013

    The Costs and Benefits of Workplace Training. / 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, The Costs and Benefits of Workplace Training. in Education and Training in Europe. Oxford University Press. https://doi.org/10.1093/acprof:oso/9780199210978.003.0013
    Brunello G, Garibaldi P, Wasmer E. The Costs and Benefits of Workplace Training. In Education and Training in Europe. Oxford University Press. 2007 https://doi.org/10.1093/acprof:oso/9780199210978.003.0013
    Brunello, Giorgia ; Garibaldi, Pietro ; Wasmer, Etienne. / The Costs and Benefits of Workplace Training. Education and Training in Europe. Oxford University Press, 2007.
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