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- W1485382711 abstract "We deviate from the Harris and Todaro (1970) model by assuming that the urban firms provide training to the workers. But whether to train or not and how many workers should be trained is decided under imperfectly competitive market conditions. On the other hand, in the rural sector perfect competition prevails. Under these circumstances the urban firms start training at a wage rate less than but very close to the unit cost incurred due to training. The urban employment falls and the rural employment rises. Therefore, the overall unemployment due to training may rise or fall at this wage rate. If the unemployment rises then it is certainly due to the existence of imperfectly competitive firms in the urban sector as well as productivity gain from training. Provision of training subsidy allows firms to start training at a lower wage rate. When turnover is allowed,the training firms start training at a wage rate even higher than that in case of no turnover, as these firms have to offer a higher wage rate in order to prevent poaching by the non-training firms. The social welfare is higher under no-turnover situation as opposed to turnover when the wage rate is fixed at the unit cost of training. An imposition of training subsidy by the government raises the social welfare when turnover is allowed provided the productivity of trained workforce is higher." @default.
- W1485382711 created "2016-06-24" @default.
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- W1485382711 date "2003-01-01" @default.
- W1485382711 modified "2023-09-25" @default.
- W1485382711 title "Training, Unemployment and Fiscal Subsidy: A Harris Todaro Approach" @default.
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- W1485382711 doi "https://doi.org/10.2139/ssrn.471981" @default.
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