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Worker mobility, employer-provided general training, and the choice of graduate education

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  • Gicheva, Dora

Abstract

This paper links inherent mobility to observed schooling choices. A job search model with graduate education predicts that more mobile workers are more likely to enroll in full-time MBA programs. Adding to the literature on employer-sponsored general training, the model predicts that employers are likely to provide tuition assistance to workers who find quits costly. I use a panel survey of GMAT registrants to test some of the empirical implications of the model. I show that observable measures of job attachment are correlated with the probability of attending part-time and, conditional on part-time attendance, with the likelihood of receiving tuition reimbursement.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 19 (2012)
Issue (Month): 2 ()
Pages: 232-240

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Handle: RePEc:eee:labeco:v:19:y:2012:i:2:p:232-240

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Web page: http://www.elsevier.com/locate/labeco

Related research

Keywords: Job mobility; Employer-provided general training; MBA education;

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References

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  1. Christopher Flinn, 2011. "Labor Market Search and Schooling Investment," Carlo Alberto Notebooks 212, Collegio Carlo Alberto.
  2. Burgess, Simon M, 1992. "A Search Model with Job Changing Costs: 'Eurosclerosis' and Unemployment," Oxford Economic Papers, Oxford University Press, vol. 44(1), pages 75-88, January.
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  4. Graddy, Kathryn & Pistaferri, Luigi, 2000. " Wage Differences by Gender: Evidence form Recently Graduated MBAs," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(0), pages 837-54, Special I.
  5. Daron Acemoglu & Jorn-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," NBER Working Papers 6740, National Bureau of Economic Research, Inc.
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  7. Wayne A. Grove & Andrew Hussey, 2011. "Returns To Field Of Study Versus School Quality: Mba Selection On Observed And Unobserved Heterogeneity," Economic Inquiry, Western Economic Association International, vol. 49(3), pages 730-749, 07.
  8. Hey, John D & McKenna, Chris J, 1979. "To Move or Not to Move?," Economica, London School of Economics and Political Science, vol. 46(182), pages 175-85, May.
  9. Murphy, Kevin M & Topel, Robert H, 1985. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(4), pages 370-79, October.
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  12. Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 142-71, January.
  13. Colleen Flaherty Manchester, 2008. "The Effect of Tuition Reimbursement on Turnover: A Case Study Analysis," NBER Chapters, in: The Analysis of Firms and Employees: Quantitative and Qualitative Approaches, pages 197-228 National Bureau of Economic Research, Inc.
  14. Katz, Eliakim & Ziderman, Adrian, 1990. "Investment in General Training: The Role of Information and Labour Mobility," Economic Journal, Royal Economic Society, vol. 100(403), pages 1147-58, December.
  15. David H. Autor, 2000. "Why Do Temporary Help Firms Provide Free General Skills Training?," NBER Working Papers 7637, National Bureau of Economic Research, Inc.
  16. Atsushi Inoue & Gary Solon, 2010. "Two-Sample Instrumental Variables Estimators," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 557-561, August.
  17. Shimer, Robert, 2006. "On-the-job search and strategic bargaining," European Economic Review, Elsevier, vol. 50(4), pages 811-830, May.
  18. Peter Arcidiacono & Jane Cooley & Andrew Hussey, 2008. "The Economic Returns To An Mba," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(3), pages 873-899, 08.
  19. Garcia, Federico & Arkes, Jeremy & Trost, Robert, 2002. "Does employer-financed general training pay? Evidence from the US Navy," Economics of Education Review, Elsevier, vol. 21(1), pages 19-27, February.
  20. Montgomery, Mark, 2002. "A nested logit model of the choice of a graduate business school," Economics of Education Review, Elsevier, vol. 21(5), pages 471-480, October.
  21. Feuer, M. & Glick, H. & Desai, A., 1987. "Is firm-sponsored education viable?," Journal of Economic Behavior & Organization, Elsevier, vol. 8(1), pages 121-136, March.
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