The impact of minimum wages on job training: an empirical exploration with establishment data.

From: Southern Economic Journal | Date: January 1, 2004| Author: Fairris, David; Pedace, Roberto | Copyright information

1. Introduction

Human capital theory suggests that workers must contribute toward investments in job training and that one way in which they might do so is through reduced wages (Becker 1964). Minimum wage laws might be expected to reduce on-the-job training, then, to the extent they prevent workers from accepting lower wages (Rosen 1972). (1) Existing empirical studies of the relationship between minimum wages and job training yield divergent results. However, most of t...

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