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The shadow value of employer-provided training

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  • Budría, Santiago

Abstract

This paper adopts an equivalent income approach to calculate the economic value of training activities for workers. Using econometric regression analysis of individual self-reported job satisfaction (JS) and data from the European Community Household Panel dataset (ECHP), the paper shows that employer-provided training exerts a positive and significant effect on JS. On average, this effect is equivalent to a 17.7% increase in labour earnings. Boes and Winkelmann’s (2009) generalized ordered probit for panel data is used to show that the determinants of JS as well as the equivalent income of training differ across the JS distribution.

Suggested Citation

  • Budría, Santiago, 2012. "The shadow value of employer-provided training," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 494-514.
  • Handle: RePEc:eee:joepsy:v:33:y:2012:i:3:p:494-514
    DOI: 10.1016/j.joep.2012.01.001
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Job satisfaction; Employer-provided training; Generalized ordered probit model; Equivalent income;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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