Training Background and Early Retirement

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Training Background and Early Retirement

Author Info

Montizaan, Raymond () (ROA, Maastricht University)
Cörvers, Frank (ROA, Maastricht University)
de Grip, Andries () (ROA, Maastricht University)

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Abstract

Several studies show that employees with firm-specific skills are more likely to be covered by employer-sponsored pension schemes than workers with general skills. Therefore it can be expected that workers with firm-specific skills retire earlier. This paper tests this prediction using US data from the National Longitudinal Survey of Older Men. We find that workers who participated in firm-specific training in their early careers retire earlier than workers with a general training background. This indicates that shared investments in firm-specific training are embedded in implicit contracts that induce early retirement. The results remain robust when controlling for technological change and work commitment.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3504.

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Length: 32 pages
Date of creation: May 2008
Date of revision:
Handle: RePEc:iza:izadps:dp3504

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Find related papers by JEL classification:
J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped
J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

This paper has been announced in the following NEP Reports:

NEP-AGE-2008-07-14 (Economics of Ageing)
NEP-ALL-2008-07-14 (All new papers)
NEP-HRM-2008-07-14 (Human Capital & Human Resource Management)
NEP-LAB-2008-07-14 (Labour Economics)

References listed on IDEAS
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Other versions:
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Other versions:
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Other versions:
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