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The impact of community college retraining on older displaced workers: Should we teach old dogs new tricks?

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Author Info

  • Louis Jacobson
  • Robert J. LaLonde
  • Daniel Sullivan

Abstract

The authors estimate the returns to retraining for older displaced workers--those 35 or older--by estimating the impact of community college schooling on earnings. The analysis relies on longitudinal administrative records covering workers displaced from jobs in Washington State during the early 1990s. The authors find that older displaced workers participated in community college schooling at lower rates than younger workers. Among those who participated, however, the impact on quarterly earnings was similar across the two age groups. One academic year of community college schooling is estimated to have increased long-term earnings by about 7% for older men and by about 10% for older women. Although these percentages are consistent with those reported in the schooling literature, estimates of the social internal rates of return from this retraining may differ substantially among older and younger workers because of differences in their work lives and their opportunity costs of retraining. (Free full-text download available at http://digitalcommons.ilr.cornell.edu/ilrreview/.)

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 58 (2005)
Issue (Month): 3 (April)
Pages: 398-415

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Handle: RePEc:ilr:articl:v:58:y:2005:i:3:p:398-415

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Cited by:
  1. Jones, Stephen, 2012. "The Effectiveness of Training for Displaced Workers with Long Prior Job Tenure," CLSSRN working papers, Vancouver School of Economics clsrn_admin-2012-3, Vancouver School of Economics, revised 29 Jan 2012.
  2. Kristin Butcher & Kevin Hallock, 2005. "Bringing together policymakers, researchers, and practitioners to discuss job loss," Economic Perspectives, Federal Reserve Bank of Chicago, Federal Reserve Bank of Chicago, issue Q II, pages 2-12.
  3. Simone Balestra & Uschi Backes-Gellner, 2012. "When a Door Closes a Window Opens? Investigating the Effects of Involuntary Separations," Economics of Education Working Paper Series, University of Zurich, Institute for Strategy and Business Economics (ISU) 0072, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Aug 2013.
  4. Blomquist, Glenn C. & Coomes, Paul A. & Jepsen, Christopher & Koford, Brandon C. & Troske, Kenneth, 2009. "Estimating the Social Value of Higher Education: Willingness to Pay for Community and Technical Colleges," IZA Discussion Papers 4086, Institute for the Study of Labor (IZA).
  5. Lynch, Lisa M., 2005. "Job Loss: Bridging the Research and Policy Discussion," IZA Discussion Papers 1518, Institute for the Study of Labor (IZA).
  6. Hällsten, Martin, 2012. "Is it ever too late to study? The economic returns on late tertiary degrees in Sweden," Economics of Education Review, Elsevier, Elsevier, vol. 31(1), pages 179-194.
  7. William W. Olney, 2008. "Do Firms Respond to Immigration?," Department of Economics Working Papers, Department of Economics, Williams College 2010-11, Department of Economics, Williams College, revised Jan 2011.

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