The Market for Training: A Human Capital Approach Available to Purchase

Considers the optimal training decisions of firms and individuals,and provides a number of reasons why there may be underinvestment in the market for training. Reflects on the individual′s decision to invest in training in the context of dynamic labour supply theories. This is combined with a model of the firm′s decision‐making process to provide a“market for training” in which wage‐training‐employment contracts are determined.