Abstract
We study the causal effect of training on job match quality using longitudinal data for a representative sample of the Dutch population. We construct an index of workers’ perceived job match quality from five survey questions on job satisfaction and on how a worker’s education and skills match with the job. Based on a dynamic linear panel data model, which accounts for potential endogeneity in training, we find that training has significantly positive short- and long-term effects on job match quality. This is mainly driven by training for human capital accumulation. Further analysis incorporating job changes shows that training for job change purpose increases the probability to change jobs, but job changes immediately following this type of training do not significantly increase job match quality. On the other hand, those who change jobs 1 year after this training do tend to get a better-matched job.
Highlights
Job match quality is increasingly recognized as an important predictor of individuals’ psychological, social, and economic well-being, and of firm pro-Electronic supplementary material The online version of this article contains supplementary material, which is available to authorized users.Economics, 39 South College Road, Haidian District, Beijing, P.R
We address the potential endogeneity of training exploiting the timing of events, assuming that shocks in job match quality are not correlated with past training
We add to the literature by estimating the causal effect of training on job match quality using a different identification strategy, exploiting the timing of events in a dynamic panel data framework
Summary
Job match quality is increasingly recognized as an important predictor of individuals’ psychological, social, and economic well-being, and of firm pro-. Following the example of Ferreira and Taylor (2011), we use factor analysis to derive a continuous measure of job match quality from five job match-related questions. A challenge for estimating the causal effect of training on job match quality is that training can be endogenous to job match quality. We find some evidence supporting the theory of career mobility: we find that training for the purpose of a job change immediately increases the probability to change jobs These new jobs are as often better matches as worse matches. We provide evidence for a causal effect of training on job match quality based on a dynamic panel data model. We examine the mechanisms underlying the effect of training on match quality For this purpose, we provide evidence for a causal effect of training on job changes and on job match quality after a job change.
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