In the standard model of human capital with perfect labor markets, workers pay for general training. When labor market frictions compress the structure of wages, firms may invest in the general skills of their employees. The reason is that the distortion in the wage structure turns "technologically" general skills into "specific" skills. Labor market frictions and institutions, such as minimum wages and union wage setting, are crucial in shaping the wage structure, and thus have an important impact on training. Our results suggest that the more frictional and regulated labor markets in Europe and Japan may generate more firm-sponsored general training than the U.S.

Becker's theory of human capital predicts that minimum wages should reduce training investments for affected workers, because they prevent these workers from taking wage cuts necessary to finance training. We show that when the assumption of perfectly competitive labor markets underlying this theory is relaxed, minimum wages can increase training of affected workers, by inducing firms to train their unskilled employees. More generally, a minimum wage increases training for constrained workers, while reducing it for those taking wage cuts to finance their training. We provide new estimates on the impact of the state and federal increases in the minimum wage between 1987 and 1992 of the training of low wage workers. We find no evidence that minimum wages reduce training. These results are consistent with our model, but difficult to reconcile with the standard theory of human capital.

Michael Wallerstein was a leader in developing a rigorous comparative political economy approach to understanding substantive issues of inequality, redistribution, and wage-determination. His early death from cancer left both a hole in the profession and a legacy that will surely provide the foundation for research on these topics. This volume collects his most important and influential contributions, organized by topic, with each topic preceded by an editorial introduction that provides overview and context.

The distribution of income, the rate of pay raises, and the mobility of employees is crucial to understanding labor economics. Although research abounds on the distribution of wages across individuals in the economy, wage differentials within firms remain a mystery to economists. The first effort to examine linked employer-employee data across countries, The Structure of Wages:An International Comparison analyzes labor trends and their institutional background in the United States and eight European countries. A distinguished team of contributors reveal how a rising wage variance rewards star employees at a higher rate than ever before, how talent becomes concentrated in a few firms over time, and how outside market conditions affect wages in the twenty-first century. From a comparative perspective that examines wage and income differences within and between countries such as Denmark, Italy, and the Netherlands, this volume will be required reading for economists and those working in industrial organization.

A collection of the theories, practices, and policies of vocational education and training written by international experts The Wiley Handbook of Vocational Education and Training offers an in-depth guide to the theories, practices, and policies of vocational education and training (VET). With contributions from a panel of leading international scholars, the Handbook contains 27 authoritative essays from a wide range of disciplines. The contributors present an integrated analysis of the complex and dynamic field of VET. Drawing on the most recent research, thinking, and practice in the field, the book explores the key debates about the role of VET in the education and training systems of various nations. The Handbook reveals how expertise is developed in an age of considerable transformation in work processes, work organization, and occupational identities. The authors also examine many of the challenges of vocational education and training such as the impact of digital technologies on employment, the demand for (re)training in the context of extended working lives, the emergence of learning regions and skill ecosystems, and the professional development of vocational teachers and trainers. This important text: Offers an original view of VET’s role in both the initial and continuing development of expertise Examines the theories and concepts that underpin international perspectives and explores the differences about the purposes of VET Presents various models of learning used in VET, including apprenticeship, and their relationship with general education Explores how VET is shaped in different ways by the political economy of different countries Reviews how developments in digital technologies are changing VET practice Discusses the challenges for universities offering higher vocational education programs Draws on both recent research as well as historical accounts Written for students, researchers, and scholars in the fields of educational studies, human resource development, social policy, political economy, labor market economics, industrial relations, sociology, The Wiley Handbook of Vocational Education and Training offers an international perspective on the topic of VET.

EBOOK: LABOR ECONOMICS

Strategic human capital resources are a relatively new construct with a scholarly literature that is still evolving. Work in this area requires the integration of multiple theoretical perspectives and empirical approaches, but that integration rarely occurs. Within these pages, the editors have combined the voices of leading scholars from a wide range of disciplinary backgrounds to provide a comprehensive introduction to the current state of the field.