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Firm-Sponsored Classroom Training: Is It Worth It For Older Workers?

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  • Benoit Dostie
  • Pierre-Thomas Léger

Abstract

We use longitudinal linked employer-employee data and find that the probability of participating in firm-sponsored classroom training diminishes with age. Although the standard human capital investment model predicts such a decline, we also consider the possibility that the wage and productivity impacts of training decline with age. Taking into account endogenous training decisions, we find that the training wage premium diminishes only slightly with age. However, estimates of the impact of training on productivity decrease dramatically with age, suggesting that incentives for firms to invest in classroom training are much lower for older workers.
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Suggested Citation

  • Benoit Dostie & Pierre-Thomas Léger, 2012. "Firm-Sponsored Classroom Training: Is It Worth It For Older Workers?," CIRANO Papers 2012n-02a, CIRANO.
    • Handle: RePEc:cir:circah:2012n-02a
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    2. Boockmann, Bernhard & Fries, Jan & Göbel, Christian, 2018. "Specific measures for older employees and late career employment," The Journal of the Economics of Ageing, Elsevier, vol. 12(C), pages 159-174.
    3. Wen Ci & Jose Galdo & Marcel Voia & Christopher Worswick, 2015. "Wage returns to mid-career investments in job training through employer supported course enrollment: evidence for Canada," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-25, December.
    4. N Renuga Nagarajan & Mineko Wada & Mei Lan Fang & Andrew Sixsmith, 2019. "Defining organizational contributions to sustaining an ageing workforce: a bibliometric review," European Journal of Ageing, Springer, vol. 16(3), pages 337-361, September.
    5. Lee, Jong-Wha & Kwak, Do Won & Song, Eunbi, 2022. "Can older workers stay productive? The role of ICT skills and training," Journal of Asian Economics, Elsevier, vol. 79(C).
    6. Fang, Tony & Gunderson, Morley & Lee, Byron, 2021. "Can Older Workers Be Retrained? Canadian Evidence from Worker-Firm Linked Data," IZA Discussion Papers 14282, Institute of Labor Economics (IZA).
    7. Ci, Wen & Galdo, José & Voia, Marcel & Worswick, Christopher, 2013. "Does adult training benefit Canadian workers?," CLSSRN working papers clsrn_admin-2013-42, Vancouver School of Economics, revised 26 Sep 2013.
    8. Vandenberghe, V., 2013. "Are firms willing to employ a greying and feminizing workforce?," Labour Economics, Elsevier, vol. 22(C), pages 30-46.
    9. Wen Ci & Michelle Laing & Marcel Voia & Christopher Worswick, 2020. "Immigrant earnings returns to post‐migration education: Evidence for Canada, 1999–2013," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1599-1617, November.
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    11. Göbel, Christian & Zwick, Thomas, 2013. "Are personnel measures effective in increasing productivity of old workers?," Labour Economics, Elsevier, vol. 22(C), pages 80-93.

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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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