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Financing On-The-Job Training: Shared Investment or Promotion Based System? Evidence from Germany

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Pannenberg, M. Financing On-The-Job Training: Shared Investment or Promotion Based System? Evidence from Germany. Journal of Contextual Economics – Schmollers Jahrbuch, 117(4), 525-543. https://doi.org/10.3790/schm.117.4.525
Pannenberg, Markus "Financing On-The-Job Training: Shared Investment or Promotion Based System? Evidence from Germany" Journal of Contextual Economics – Schmollers Jahrbuch 117.4, 1997, 525-543. https://doi.org/10.3790/schm.117.4.525
Pannenberg, Markus (1997): Financing On-The-Job Training: Shared Investment or Promotion Based System? Evidence from Germany, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 117, iss. 4, 525-543, [online] https://doi.org/10.3790/schm.117.4.525

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Financing On-The-Job Training: Shared Investment or Promotion Based System? Evidence from Germany

Pannenberg, Markus

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 117 (1997), Iss. 4 : pp. 525–543

2 Citations (CrossRef)

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Pannenberg, Markus

Cited By

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    https://doi.org/10.7202/602347ar [Citations: 0]

Abstract

Though the shared investment hypothesis of human capital theory, i.e. that employers and employees share the costs of and the return on investment in firm-specific human capital, is widely accepted, we know little about the empirical evidence. The paper shows that in German data (1984 - 1991) there is no empirical evidence for the shared investment hypothesis. Rather we observe that employers are able to protect one-sided investments against opportunistic bargaining. Moreover there is a positive correlation between the incidence of employer-supported on-the-job training and promotions within firms.