Section Onetraining, which has been reduced by the training costs.
Employers also can recoup some of their investments in general
training because employees incur costs of mobility, such as the
costs of finding new jobs and relocating. If the costs of mobility
are high enough (moving expenses, realtors’ fees, psychological
costs of moving children, etc.) the employer can pay a wage
lower than the employee’s new general skills would warrant at
other places of employment.^12
Labor economists also argue that employers are more
reluctant to lay off employees in whom they have invested in
specific training. (When employers pay part of the costs of
general training, the firm also will be reluctant to lay off
workers who have received this training.) Like general training,
specific training can be obtained through formal programs. It
also can be obtained through on-the-job experience, as much
of what employees learn on the job tends to be of a specific
nature. Employees who receive specific training from an
employer receive a lower wage after training than their
productivity would warrant because no other employers have
use for these specific skills.^13 Thus, it is likely that the employer
will have invested more heavily in these employees and would
not want to lose the investment.