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Training Participation of a Firm's Aging Workforce

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Author Info

  • Christian Pfeifer

    ()
    (Institute of Economics, Leuphana University Lüneburg and IZA Bonn, Germany)

  • Simon Janssen

    ()
    (Department of Business Administration, University of Zurich)

  • Philip Yang

    ()
    (Leibniz University Hannover, Institute of Labor Economics)

  • Uschi Backes-Gellner

    ()
    (Department of Business Administration, University of Zurich)

Abstract

We use a long panel data set for four cohorts of male blue-collar workers entering into an internal labor market to analyze the effect of age on the probability of participating in different employer-financed training measures. We find that training participation probabilities are inverted u-shaped with age and that longer training measures are undertaken earlier in life and working career. These findings are consistent with predictions from a human capital model that incorporates amortization period and screening effects.

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File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0080_lhwpaper.pdf
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Bibliographic Info

Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Economics of Education Working Paper Series with number 0080.

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Length: 33 pages
Date of creation: Aug 2012
Date of revision:
Handle: RePEc:iso:educat:0080

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Keywords: Age; Human capital; Internal labor markets; Training;

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References

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  1. Henry S. Farber & Robert Gibbons, 1991. "Learning and Wage Dynamics," NBER Working Papers 3764, National Bureau of Economic Research, Inc.
  2. Robert Hutchens, 1988. "Do job opportunities decline with age?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 42(1), pages 89-99, October.
  3. Oosterbeek, Hessel, 1998. "Unravelling Supply and Demand Factors in Work-Related Training," Oxford Economic Papers, Oxford University Press, vol. 50(2), pages 266-83, April.
  4. Topel, Robert H & Ward, Michael P, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 439-79, May.
  5. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-40, September.
  6. Acemoglu, D. & Pischki, J.S., 1996. "Why Do Firms Train? Theory and Evidence," Working papers 96-7, Massachusetts Institute of Technology (MIT), Department of Economics.
  7. Gruber, Jonathan & Wise, David, 1998. "Social Security and Retirement: An International Comparison," American Economic Review, American Economic Association, vol. 88(2), pages 158-63, May.
  8. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2003. "Training in Europe," IZA Discussion Papers 933, Institute for the Study of Labor (IZA).
  9. Riphahn, Regina T. & Trübswetter, Parvati, 2006. "Population Aging and Continued Education," IZA Discussion Papers 2415, Institute for the Study of Labor (IZA).
  10. Fabian Lange, 2007. "The Speed of Employer Learning," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 1-35.
  11. Wiji Arulampalam & Alison L. Booth, 1997. "Who gets over the training hurdle? A study of the training experiences of young men and women in Britain," Journal of Population Economics, Springer, vol. 10(2), pages 197-217.
  12. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December.
  13. Leora Friedberg, 2001. "The Impact of Technological Change on Older Workers: Evidence from Data on Computer Use," NBER Working Papers 8297, National Bureau of Economic Research, Inc.
  14. Harley Frazis & Maury Gittleman & Mary Joyce, 2000. "Correlates of training: An analysis using both employer and employee characteristics," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(3), pages 443-462, April.
  15. Chan, Sewin & Stevens, Ann Huff, 2001. "Job Loss and Employment Patterns of Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 484-521, April.
  16. O'Connell, Philip J. & Byrne, Delma, 2009. "The Determinants and Effects of Training at Work: Bringing the Workplace Back In," Papers WP289, Economic and Social Research Institute (ESRI).
  17. Booth, Alison L. & Bryan, Mark L., 2002. "Who Pays for General Training? New Evidence for British Men and Women," IZA Discussion Papers 486, Institute for the Study of Labor (IZA).
  18. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
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Cited by:
  1. Guerrazzi, Marco, 2014. "Workforce ageing and the training propensity of Italian firms: cross-sectional evidence from the INDACO survey," MPRA Paper 56826, University Library of Munich, Germany.

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