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The puzzle of non-participation in continuing training : an empirical study of chronic vs. temporary non-participation

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  • Backes-Gellner, Uschi
  • Mure, Johannes
  • Tuor, Simone N.

Abstract

"Although participation in continuing vocational training is often found to be associated with considerable individual benefits, a puzzlingly large number of people still do not take part in training. In order to solve the puzzle we distinguish between temporary and chronic non-participants. Previous studies have shown that training participants and non-participants differ in unobservable characteristics and therefore self-select into training or not. We show that even non-participants cannot be treated as a homogeneous group: there are those who never take part in training (chronic non-participants) and those who are not currently taking part (temporary (non-)participants). Using a unique data set of non-participants commissioned by the German 'Expert Commission on Financing Lifelong Learning' and covering a very large number of individuals not taking part in training, we separate and compare chronic and temporary non-participants. By estimating a sample selection model using maximum likelihood estimation we take potential selection effects into account: temporary (non-)participants may be more motivated or may have different inherent skills than chronic nonparticipants. We find that chronic non-participants would have higher costs than temporary (non-)participants and their short-term benefits associated with their current jobs would be lower. However, in the long run even chronic non-participants would benefit similarly from participation due to improved prospects on the labor market. The results indicate that chronic non-participants either misperceive future developments or suffer from an exceptionally high discount rate, which in turn leads in their view to a negative cost-benefit ratio for training." (Author's abstract, IAB-Doku) ((en)) Additional Information Kurzfassung (deutsch) Executive summary (English)

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Bibliographic Info

Article provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its journal Zeitschrift für ArbeitsmarktForschung – Journal for Labour Market Research.

Volume (Year): 40 (2007)
Issue (Month): 2/3 ()
Pages: 295-311

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Handle: RePEc:iab:iabzaf:v:2007:i:2/3:p:295-311

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Keywords: Weiterbildung; Teilnehmer; Bildungsbeteiligung; Bildungsinvestitionen; Bildungsertrag; Kosten-Nutzen-Analyse; Bildungsökonomie;

References

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  1. Stefan C. Wolter & Samuel Mühlemann & Jürg Schweri, 2006. "Why Some Firms Train Apprentices and Many Others Do Not," German Economic Review, Verein für Socialpolitik, Verein für Socialpolitik, vol. 7, pages 249-264, 08.
  2. Anna Vignoles & Fernando Galindo-Rueda & Leon Feinstein, 2004. "The Labour Market Impact of Adult Education and Training: A Cohort Analysis," Scottish Journal of Political Economy, Scottish Economic Society, Scottish Economic Society, vol. 51(2), pages 266-280, 05.
  3. Leon Feinstein & Fernando Galindo-Rueda & Anna Vignoles, 2004. "The labour market impact of adult education and training: a cohort analysis," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 19470, London School of Economics and Political Science, LSE Library.
  4. Harley Frazis & Mark A. Loewenstein, 2005. "Reexamining the Returns to Training: Functional Form, Magnitude, and Interpretation," Journal of Human Resources, University of Wisconsin Press, University of Wisconsin Press, vol. 40(2).
  5. Groot, Wim, 1995. "The Wage Effects of Investments in Enterprise-Related Training," Empirical Economics, Springer, Springer, vol. 20(1), pages 133-47.
  6. Budría, Santiago & Pereira, Pedro T., 2004. "On the Returns to Training in Portugal," IZA Discussion Papers 1429, Institute for the Study of Labor (IZA).
  7. Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 24(2), pages 235-270, April.
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