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The shadow value of employer-provided training

Listed author(s):
  • Budría, Santiago

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.

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File URL: http://www.sciencedirect.com/science/article/pii/S0167487012000190
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Article provided by Elsevier in its journal Journal of Economic Psychology.

Volume (Year): 33 (2012)
Issue (Month): 3 ()
Pages: 494-514

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Handle: RePEc:eee:joepsy:v:33:y:2012:i:3:p:494-514
DOI: 10.1016/j.joep.2012.01.001
Contact details of provider: Web page: http://www.elsevier.com/locate/joep

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  1. Santiago Budria & Pedro Telhado Pereira, 2007. "The wage effects of training in Portugal: differences across skill groups, genders, sectors and training types," Applied Economics, Taylor & Francis Journals, vol. 39(6), pages 787-807.
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  11. Edwin Leuven & Hessel Oosterbeek, 2008. "An alternative approach to estimate the wage returns to private-sector training," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(4), pages 423-434.
  12. Ferrer-i-Carbonell, Ada, 2005. "Income and well-being: an empirical analysis of the comparison income effect," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 997-1019, June.
  13. Ada Ferrer-i-Carbonell & Paul Frijters, 2002. "How important is Methodology for the Estimates of the Determinants of Happiness?," Tinbergen Institute Discussion Papers 02-024/3, Tinbergen Institute.
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  15. Stefan Boes & Rainer Winkelmann, 2010. "The Effect of Income on General Life Satisfaction and Dissatisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 95(1), pages 111-128, January.
  16. Daniel Parent, 1995. "Wages and Mobility: The Impact of Employer-Provided Training," CIRANO Working Papers 95s-27, CIRANO.
  17. Rudolf Winter-Ebmer & Josef Zweimueller, "undated". "Firm Size Wage Differentials in Switzerland: Evidence from Job Changers," IEW - Working Papers 001, Institute for Empirical Research in Economics - University of Zurich.
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  19. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
  20. Sousa-Poza, Alfonso & Sousa-Poza, Andres A., 2007. "The effect of job satisfaction on labor turnover by gender: An analysis for Switzerland," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(6), pages 895-913, December.
  21. Bernard van den Berg & Ada Ferrer-i-Carbonell, 2007. "Monetary valuation of informal care: the well-being valuation method," Health Economics, John Wiley & Sons, Ltd., vol. 16(11), pages 1227-1244.
  22. Ada Ferrer-i-Carbonell & Bernard M. S. van Praag, 2001. "The Subjective Costs of Health Losses Due to Chronic Diseases: An Alternative Model for Monetary Appraisal," Discussion Papers of DIW Berlin 262, DIW Berlin, German Institute for Economic Research.
  23. Richard Blundell & Lorraine Dearden & Costas Meghir & Barbara Sianesi, 1999. "Human capital investment: the returns from education and training to the individual, the firm and the economy," Fiscal Studies, Institute for Fiscal Studies, vol. 20(1), pages 1-23, March.
  24. Justina A. V. Fischer & Alfonso Sousa-Poza, 2008. "Does Job Satisfaction Improve the Health of Workers?: New Evidence Using Panel Data and Objective Measures of Health," SOEPpapers on Multidisciplinary Panel Data Research 76, DIW Berlin, The German Socio-Economic Panel (SOEP).
  25. Clark, Andrew E., 1999. "Are wages habit-forming? evidence from micro data," Journal of Economic Behavior & Organization, Elsevier, vol. 39(2), pages 179-200, June.
  26. Goux, Dominique & Maurin, Eric, 2000. "Returns to firm-provided training: evidence from French worker-firm matched data1," Labour Economics, Elsevier, vol. 7(1), pages 1-19, January.
  27. Daniel Kahneman & Alan B. Krueger, 2006. "Developments in the Measurement of Subjective Well-Being," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 3-24, Winter.
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