Edwin Leuven|Hessel Oosterbeek|Randolph Sloof|Chris van Klaveren
Worker Reciprocity and Employer Investment in Training
University of Amsterdam|Tinbergen Institute|University of Amsterdam|Tinbergen Institute|University of Amsterdam|Tinbergen Institute|University of Amsterdam
standard economic theory predicts firms invest general training underinvest specific training empirical evidence however indicates firms invest general training workers evidence laboratory experiments points less underinvestment specific training theory predicts propose simple model firm invests socially optimal amounts general specific training worker sufficiently motivated reciprocity reciprocal worker may willing give firm full return investment present empirical evidence supports proposed mechanism workers high sensitivity reciprocity 15 higher training rates workers low sensitivity reciprocity