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Why Do Low-Educated Workers Invest Less in Further Training?

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Author Info

  • Fouarge, Didier

    ()
    (ROA, Maastricht University)

  • Schils, Trudie

    ()
    (Maastricht University)

  • de Grip, Andries

    ()
    (ROA, Maastricht University)

Abstract

Several studies document the fact that low-educated workers participate less often in further training than high-educated workers. The economic literature suggests that there is no significant difference in employer willingness to train low-educated workers, which leaves the question of why the low educated invest less in training unanswered. This paper investigates two possible explanations: Low-educated workers invest less in training because of 1) the lower economic returns to these investments or 2) their lower willingness to participate in training. Controlling for unobserved heterogeneity that can affect the probability of enrolling into training, we find that the economic returns to training for low-educated workers are positive and not significantly different from those for high-educated workers. However, low-educated workers are significantly less willing to participate in training. This lesser willingness to participate in training is driven by economic preferences (future orientation, preference for leisure), as well as personality traits (locus of control, exam anxiety, and openness to experience).

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5180.

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Length: 32 pages
Date of creation: Sep 2010
Date of revision:
Publication status: published in: Applied Economics, 2013, 45 (18), 2587-2601
Handle: RePEc:iza:izadps:dp5180

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Keywords: returns to training; preferences; non-cognitive skills;

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References

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  1. Santiago Budria & Pedro Telhado Pereira, 2007. "The wage effects of training in Portugal: differences across skill groups, genders, sectors and training types," Applied Economics, Taylor & Francis Journals, vol. 39(6), pages 787-807.
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Citations

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Cited by:
  1. Gerards Ruud & Grip Andries de & Witlox Maaike, 2012. "Employability-miles and worker employability awareness," ROA Research Memorandum 010, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  2. Antoni, Manfred, 2011. "Lifelong learning inequality? The relevance of family background for on-the-job training," IAB Discussion Paper 201109, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. repec:dgr:umamet:2012043 is not listed on IDEAS
  4. Görlitz, Katja & Tamm, Marcus, 2012. "Revisiting the Complementarity between Education and Training: The Role of Personality, Working Tasks and Firm Effects," IZA Discussion Papers 6278, Institute for the Study of Labor (IZA).
  5. Osiander, Christopher, 2012. "Determinanten der Weiterbildungsbereitschaft gering qualifizierter Arbeitsloser," IAB Discussion Paper 201229, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  6. Singer, Christine & Toomet, Ott-Siim, 2013. "On government-subsidized training programs for older workers," IAB Discussion Paper 201321, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  7. Judith Offerhaus, 2013. "The Type to Train?: Impacts of Personality Characteristics on Further Training Participation," SOEPpapers on Multidisciplinary Panel Data Research 531, DIW Berlin, The German Socio-Economic Panel (SOEP).
  8. Beblavý, Miroslav & Thum, Anna-Elisabeth & Potjagailo, Galina, 2013. "When do adults learn? A cohort analysis of adult education in Europe," CEPS Papers 8059, Centre for European Policy Studies.
  9. repec:dgr:umaror:2012010 is not listed on IDEAS

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