Marketable Human Capital Investments: An Empirical Study of Employer-Sponsored Training

Stockholm University, School of Business Working Paper

37 Pages Posted: 29 May 2002

See all articles by Bo Hansson

Bo Hansson

Organization for Economic Co-Operation and Development (OECD) - Directorate for Education (EDU)

Date Written: 2002-02-11

Abstract

This study examines the predictions of human capital theory in relation to on-the-job training. The analysis is based on a unique dataset from a consulting establishment and includes direct measures of profitability, training, and each employee's acquired human capital stock. Consistent with recent findings in the training literature, the present observations indicate that the employer is financing as well as extracting the rents from marketable human capital investments. A salary increase in connection with employer-sponsored training may function as a means of safeguarding these investments and, to a lesser extent, as a consequence of shared return.

Keywords: On-the-job training, Company training, General training, Employer financed training, Rent extraction, Profitability

JEL Classification: J31, J24

Suggested Citation

Hansson, Bo, Marketable Human Capital Investments: An Empirical Study of Employer-Sponsored Training (2002-02-11). Stockholm University, School of Business Working Paper, Available at SSRN: https://ssrn.com/abstract=311516 or http://dx.doi.org/10.2139/ssrn.311516

Bo Hansson (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Directorate for Education (EDU) ( email )

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+33 01 4430 6177 (Fax)

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