# 经济代写|劳动经济学代写Labor Economics代考|ECON308

## 经济代写|劳动经济学代写Labor Economics代考|Training and Post-Training Wage Increases

Consider a situation in which worker-mobility costs are relatively low, and the employer is considering bearing all the costs of training. With investment costs to recoup, the employer would be unable to raise wages very much after training and still have incentives to invest. We know that higher wages reduce the probability of a worker quitting, so by failing to increase the wage much after training, the employer would put its investment at risk. Trained workers might decide to quit at even a small provocation (the boss is in a bad mood one day, for example, or they are asked to work overtime for a while), and without some assurance that trained employees will stay, the firm would be reluctant to make a training investment for which it bore all the costs.

Conversely, if a firm’s employees paid for their own training by taking a lower wage than they could get elsewhere during the training period, they would require the benefits of a much higher post-training wage to make employment at the firm attractive. If they were to get all of their improved marginal revenue product in the form of a wage increase, however, an employer that finds it relatively inexpensive to hire and fire workers would have little to lose by firing them at the smallest provocation-and if they get fired, their investment is destroyed!

Thus, if labor market frictions are otherwise small, the best way to provide incentives for on-the-job training is for employers and employees to share the costs and returns of the investment. If employees pay part of these costs, the post-training wage can be increased more than if employers bear all the training costs-and the increased posttraining wage protects firms’ investments by reducing the chances trained workers will quit. The training costs borne by employers must be recouped by not raising the posttraining wage very much, but this condition helps protect workers’ investments by making it attractive for firms to retain them unless the provocation is major (we discuss the issue of layoffs in more detail a bit later in this chapter). Put differently, if both employers and employees share in the costs of training, and thus share in the returns, they both have something to lose if the employment relationship is ended in the posttraining period.

## 经济代写|劳动经济学代写Labor Economics代考|Employer Training Investments and Recessionary Layoffs

We have seen that employers will have incentives to invest in worker training only when the post-training marginal revenue productivity is expected to be sufficiently above the wage so that the investment returns are attractive. Suppose a firm has made the investment but at some point thereafter finds that its workers’ marginal revenue productivity falls below what it expected because of a business downturn (a “recession”). If it cannot lower wages for one reason or another (we will discuss why wages might be inflexible in a downward direction in chapter 14), will the firm want to lay off its trained workers?

In general, firms will not want to lay off their workers as long as the workers are bringing in revenues that are in excess of their wages. Even if the gap between marginal revenue productivity and wage is not sufficient to yield an attractive return on the firm’s training investment, those training costs- once incurred-are “sunk.” While the firm might wish it had not invested in training, the best it can do after training is get what returns it can. Workers who are laid off clearly bring in no returns to the employer, so its incentives are to retain any worker whose marginal revenue productivity exceeds his or her wage. Of course, if the downturn causes marginal revenue productivity to still fall below the wage rate, firms do have incentives to lay off trained workers (unless they believe the downturn will be very short and do not want to take the risk that the laid-off workers will search for other employment).

The presence of employer training investments, then, offers an explanation for two phenomena we observe in the labor market. First, as a general rule, we observe that workers who are least susceptible to being laid off during recessions are the most skilled and those with the longest job tenures. ${ }^{26}$ Older and more skilled workers are those most likely to have been the objects of past employer training investments, and they therefore tend to enter recessions with larger gaps between marginal revenue product and wage. These gaps cushion any fall in marginal revenue product and provide their employers with stronger incentives to keep on employing them during the downturn. Workers who enter the recession with wages closer to marginal revenue productivity are more likely to find that the downturn causes their marginal revenue product to fall below their wage, and when this occurs, employers may find it profitable to lay them off.

Second, we observe that average labor productivity-output per labor hour-falls in the early stages of a recession and rises during the early stages of recovery. As demand and output start to fall, firms that have invested in worker training respond by keeping their trained workers on the payroll even though their marginal productivity falls. Such “labor hoarding” causes output per worker to fall. Of course, when demand picks up again, firms can increase output without proportionately increasing their employment because, in effect, they have maintained an inventory of trained labor. In the latter situation, output per worker rises.

## 经济代写|劳动经济学代写劳动经济学代考|雇主培训、投资和衰退裁员

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