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Hiring Costs for Skilled Workers and the Supply of Firm-Provided Training

Author

Listed:
  • Marc Blatter

    (Department of Economics, University of Bern)

  • Samuel Muehlemann

    (University of Munich & IZA Bonn)

  • Samuel Schenker

    (State Secretariat for International Financial Matters, Switzerland)

  • Stefan C. Wolter

    (Department of Economics, University of Bern & IZA Bonn & CESifo Munich)

Abstract

This paper analyzes how the costs of hiring skilled workers from the external labor market affect a firm's supply of training. Using administrative survey data with detailed information on hiring and training costs for Swiss firms, we find evidence for substantial and increasing marginal hiring costs. However, firms can invest in internal training of unskilled workers and thereby avoid costs for external hiring. Controlling for a firm's training investment, we find that a one standard deviation increase in external hiring costs increases the number of internal training positions by 0.7 standard deviations.

Suggested Citation

  • Marc Blatter & Samuel Muehlemann & Samuel Schenker & Stefan C. Wolter, 2012. "Hiring Costs for Skilled Workers and the Supply of Firm-Provided Training," Economics of Education Working Paper Series 0109, University of Zurich, Department of Business Administration (IBW).
    • Handle: RePEc:iso:educat:0109
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    References listed on IDEAS

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    More about this item

    Keywords

    hiring costs; apprenticeship training; firm-sponsored training;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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