The effect of training on workers’ perceived job match quality

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.