The timing of education
The timing of education
We study an assignment-with-investment model to highlight a tradeoff between investment in human capital before (ex ante system) and after (ex post system) matching on the labor market. The ex post system is better at coordinating investment within firms whereas the ex ante system is better at reducing mismatches. We further show that the ability to transfer surplus within firms affects mismatches and the relative performance of the two systems. At high degrees of transferability, they are equivalent. But when transferability is very low, the ex post system outperforms the ex ante system, although with moderate transferability the reverse is true.
427-435
Gall, Thomas
8df67f3d-fe3c-4a3f-8ce7-e2090557fcd4
Legros, Patrick
4a893422-520b-4be2-a2ec-1880676cfbe4
Newman, Andrew F.
220e4882-699b-4d85-a41a-316516661f0e
April 2006
Gall, Thomas
8df67f3d-fe3c-4a3f-8ce7-e2090557fcd4
Legros, Patrick
4a893422-520b-4be2-a2ec-1880676cfbe4
Newman, Andrew F.
220e4882-699b-4d85-a41a-316516661f0e
Gall, Thomas, Legros, Patrick and Newman, Andrew F.
(2006)
The timing of education.
Journal of the European Economic Association, 4 (2-3), .
(doi:10.1162/jeea.2006.4.2-3.427).
Abstract
We study an assignment-with-investment model to highlight a tradeoff between investment in human capital before (ex ante system) and after (ex post system) matching on the labor market. The ex post system is better at coordinating investment within firms whereas the ex ante system is better at reducing mismatches. We further show that the ability to transfer surplus within firms affects mismatches and the relative performance of the two systems. At high degrees of transferability, they are equivalent. But when transferability is very low, the ex post system outperforms the ex ante system, although with moderate transferability the reverse is true.
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Published date: April 2006
Organisations:
Economics
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Local EPrints ID: 348654
URI: http://eprints.soton.ac.uk/id/eprint/348654
ISSN: 1542-4766
PURE UUID: ad7cc887-8842-4616-a80b-06279e5bbf03
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Date deposited: 04 Mar 2013 14:00
Last modified: 15 Mar 2024 03:46
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Author:
Patrick Legros
Author:
Andrew F. Newman
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