Management Papers
Document Type
Journal Article
Date of this Version
7-2004
Publication Source
Journal of Econometrics
Volume
121
Issue
1-2
Start Page
213
Last Page
241
DOI
10.1016/j.jeconom.2003.10.014
Abstract
Employers routinely provide financial support for their employees who pursue post-secondary education despite the fact that it represents perhaps the classic example of a “general skill” that costs the employer money and raises the market wages of employees who possess it. The analysis below examines why employers provide such support, and the results suggest that employees do not pay for tuition assistance through below market or training wages, the typical arrangement for funding general skills training. Instead, tuition assistance appears to select better quality employees who stay on the job longer, at least in part to keep making use of that benefit.
Copyright/Permission Statement
© 2004. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
Keywords
training, education, general skills
Recommended Citation
Cappelli, P. (2004). Why Do Employers Pay for College?. Journal of Econometrics, 121 (1-2), 213-241. http://dx.doi.org/10.1016/j.jeconom.2003.10.014
Included in
Business Administration, Management, and Operations Commons, Human Resources Management Commons, Strategic Management Policy Commons
Date Posted: 27 November 2017
This document has been peer reviewed.