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

 

Date Posted: 27 November 2017

This document has been peer reviewed.