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image (On-the-Job Training (Employee (Benefit (Wage :arrow_up:), Cost…
Investment
Benefit
Current
Cost
Direct
Indirect
Future
Choice
VpBenefits > VpCosts
Payment X years from now/(1+i)^n
Generalizations
College Premium
OldMan
imperfections
Demand
OptimalSchooling
r:i
marginal internal
i=r
optimum
Curve
investment
factors
uncertainty
funds
abilities
On-the-Job Training
Employee
Benefit
Wage :arrow_up:
Cost
wage :arrow_down:
Firms
Benefit
Productive :arrow_up:
Cost
Trainers
Output :arrow_down:
Types
Specific
Employer-Paid
Pre: wt>MRP1
Post: Wp<MRP1
General
Employee-Paid
Post:Wp>Wu
while
Wt<Wu
Hiring
MRP=MWC
Criticism
Investment vs. Consumption
Non-Wage Benefits
Ability
Screening