The Korean Journal of Economic Studies
Dynamics of Firm Investment on Training: An Agent-Based Model Approach
Jung-Seung Yang (Korea Research Institute for Vocational Education & Training)Year 2018Vol. 66No. 4
AbstractThis study investigated the relationship between companies’ investment on training and individual workers’ efforts by an agent-based model. We simulated a virtual society where heterogeneous companies and workers carried out production. The results showed that initial proportion of companies investing on training was negatively related with the return on training investment and investing on training was not good strategy in most cases. The faster learning speed was, the worse investing on training was and cut-down on training cost increased the total production in the economy and the proportion of training-investing companies. And, if the government supports a part of the training cost of companies, the total production of the economy and the proportion of training-investing companies also increased. Compared to the case of cut-down on training cost, it was found that the government’s support was more efficient. On the other hand, expenditure of labor effort was kept stable.