TY  - JOUR
AU  - Cappelli,Peter
TI  - Why Do Employers Pay For College?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9225
PY  - 2002
Y2  - September 2002
UR  - http://www.nber.org/papers/w9225
L1  - http://www.nber.org/papers/w9225.pdf
N1  - Author contact info:
Peter Cappelli
The Wharton School
Center for Human Resources
University of Pennsylvania
Philadelphia, PA  19104-6358
Tel: 215/898-2722
Fax: 215/898-5908
E-Mail: cappelli@wharton.upenn.edu
M2  - featured in NBER digest on 2003-02-01
AB  - 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.
ER  -