Training and Job-to-Job Mobility with Transfer Fees,

Clicks: 4
ID: 323124
2026
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Abstract
Abstract This study examines the potential impact of introducing a transfer system, similar to that used in professional soccer, into the standard labor market. We develop a toy model highlighting the theoretical properties of transfer fees. We show that, unlike non-compete clauses—which generate a trade-off between training and mobility—transfer fees encourage investment in training while preserving efficient mobility toward more productive firms. As a result, such a system brings the economy closer to the social optimum than laissez-faire. We then construct a life-cycle model featuring endogenous job creation and destruction, on-the-job search, and training. Using data from the French Labor Force Survey, we estimate the model’s parameters and conduct counterfactual experiments. Our simulations suggest that a time-limited compensation mechanism would significantly increase employment, training access, and welfare.
Reference Key
openalex_W7171922779 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Anthony Terriau, Arnaud Chéron
Journal journal of the european economic association
Year 2026
DOI
10.1093/jeea/jvag044
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