GENERAL TRAINING AND OLIGOPSONY

I consider a duopsony model od a general skilled labour market. The source of power of the firms is the mobility cost of the workers. In the model the firms bear a share of the general training cost. If capital market imperfections prevent workers from investing in human capital, the imperfect competition in the skilled labour market promotes general training. In order to remove the inefficiency of personnel training it is necessary to link together a minimum wage for skilled workwers and loans to apprentices.