There is no money paid over, but there is an increase in the peep's skill bar. When a peep advances to the higher levels, each increase barely registers, but it most definitely happens, as Simsane says. It's the same amount as when the peep completes a cycle of working on their career. The game uses the same routine when the magazine is used, hence the rather misleading message.

I think Barbara has said that it's unlikely to be changed at this stage.