The Effect of Tuition Reimbursement on Turnover: A Case Study Analysis

Colleen N. Flaherty

No 12975, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Tuition reimbursement programs provide financial assistance for direct costs of education and are a type of general skills training program commonly offered by employers in the United States. Standard human capital theory argues that investment in firm-specific skills reduces turnover, while investment in general skills training could result in increased turnover. However, firms cite increased retention as a motivation for offering tuition reimbursement programs. This rationale for offering these programs challenges the predictions of the standard human capital model. This paper tests empirically whether participation in tuition reimbursement programs increases employee retention using data from a non-profit institution. To document the prevalence of tuition reimbursement programs, the case study analysis is supplemented with findings from the Survey of Employer-Provided Training, 1995 (SEPT95). This paper finds that participation in tuition reimbursement programs reduces employee turnover.

JEL-codes: J24 (search for similar items in EconPapers)
Date: 2007-03
Note: ED LS
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published as The Effect of Tuition Reimbursement on Turnover: A Case Study Analysis , Colleen Flaherty Manchester. in The Analysis of Firms and Employees: Quantitative and Qualitative Approaches , Bender, Lane, Shaw, Andersson, and von Wachter. 2008

Downloads: (external link)
http://www.nber.org/papers/w12975.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:12975

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w12975

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().