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

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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
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Journal journal of the european economic association
Year 2026
DOI
10.1093/jeea/jvag044
URL
https://doi.org/10.1093/jeea/jvag044
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