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Extra info for Variational convergence for functions and operators
The advantages of internal labor market organization in mitigating these kinds of risks, which are incurred primarily by emplOYers, were raised by Doeringer and Piore (1971) and again by Williamson (1975). But what about risks incurred by employees? Assuming that cost-sharing of the specifIc training investment constitutes an implicit contract, it does not typically guarantee a longterm wage profIle. Firms can attempt to keep a portion of the workers' returns to training by bargaining wages down, and ftrms will usually win in the bargaining contest because of their size advantages.
4 Indeed, the process of learning fmn-specific skills -- perhaps more than the measureable outcome of the process - may entail team work and may require the development or sharpening of basic cognitive skills that are important in many firms. 5 Future surveys could be made more useful for the examination of these issues by providing more detailed information on the type of courses taken, and in particular. the level of fmn-specificity. 43 In Feuer et al (1987) we addressed two important aspects of the viability question, and reported two main results: (1) Workers whose firms pay most of the costs of their postgraduate course work do not necessarily earn less than workers who pay their own way, ceteris paribus.
Consequently, the profitability rates in col. 4, 5, an 6 remain conceptually valid, as measures of profitability of training, regardless of who bears the cost. What does the range of estimates in Table 2 tell us about adequacy of training? As soft as it may be, this is the evidence that could be marshalled. Are the rates too high, suggesting underinvestment? Column 5 in which depreciation is negligible suggests quite ample profitability, even if trainees stay in the firm no longer than non-trainees!