Do They Stay or Do They Go? Investing in General Human Capital of Employees.

Almost all employers invest in the human capital of their employees by providing training. By utilizing the second wave of the Social Survey of the Network of the Dutch (2007), this paper will empirically examine the consequences of these investments in human capital by employers on the leaving intentions of employees. Two mechanisms are tested. On the one hand the rational reasoning of Becker (1964) which states that employees will show no solidarity towards their employer and leave their employer after receiving general human capital. On the other hand the reciprocity reasoning which is based on the principle of gift exchange. In exchange for general training employees would show higher levels of solidarity, decreasing their leaving intentions. Taking into account determinants of solidarity found in previous research we focused on the consequences of investments in training on leaving intentions. We find investments in general human capital to induce people to leave their employer, confirming the theory of Becker (1964)