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Minimum Wages and On-the-Job Training

Опубликовано на портале: 03-10-2003
Тематический раздел:
Considering to Beckers theory of human capital it predicts that minimum wages should reduce training investments for affected workers because they prevent these workers from taking wage cuts necessary to finance training. In contrast, in noncompetitive labor markets, minimum wages tend to increase training of affected workers because they induce firms to train their unskilled employees. The Authors provide new estimates on the impact of the state and federal increases in the minimum wage between 1987 and 1992 on the training of low wage workers. They find no evidence that minimum wages reduce training, and little evidence that they tend to increase training. It is developed a hybrid model where minimum wages reduce the training investments of workers who were taking wage cuts to finance their training, while increasing the training of other workers. Finally, some evidence consistent with this hybrid model was made up.

Cтатья представлена в сборнике Institute for the Study of Labor (IZA), серия IZA Discussion Papers. Полный текст представлен на странице, посвященной этой статье, в формате *.pdf.
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