Training or not: what is at stake during an economic downturn?

Doneschi, Andrea - Patron, Rossana

Resumen:

This article discusses training decisions and the economy-wide consequences of training provision, particularly during an economic downturn. This approach considers as key elements, the wage gap and the probability of employability gap pre- and post training, taking the gains from these two elements as the key to the decision to undertake training. As public training provision may not be attractive enough for unskilled workers because of the limited benefits reported to potential trainees, this article also discusses the role of training for development, providing a novel approach to assess its value. As it may speed the development process by the abatement of key adjustment parameters, also with favorable impact on wage disparity, it is argued that these effects reveal the true value of easing mobility. Thus the analysis highlights the relevance of improving training attractiveness and effectiveness.


Detalles Bibliográficos
2012
Training
Labor mobility
Restructuring
Development
CAPACITACION EN EL EMPLEO
DESARROLLO
MERCADO DE TRABAJO
Inglés
Universidad de la República
COLIBRI
https://hdl.handle.net/20.500.12008/38555
Acceso abierto
Licencia Creative Commons Atribución - No Comercial - Sin Derivadas (CC - By-NC-ND 4.0)
Resumen:
Sumario:This article discusses training decisions and the economy-wide consequences of training provision, particularly during an economic downturn. This approach considers as key elements, the wage gap and the probability of employability gap pre- and post training, taking the gains from these two elements as the key to the decision to undertake training. As public training provision may not be attractive enough for unskilled workers because of the limited benefits reported to potential trainees, this article also discusses the role of training for development, providing a novel approach to assess its value. As it may speed the development process by the abatement of key adjustment parameters, also with favorable impact on wage disparity, it is argued that these effects reveal the true value of easing mobility. Thus the analysis highlights the relevance of improving training attractiveness and effectiveness.