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

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  • Dostie, Benoit

    ()
    (HEC Montreal)

  • Léger, Pierre Thomas

    ()
    (HEC Montreal)

Abstract

We use longitudinal linked employer-employee data and find that the probability of participating in firm-sponsored classroom training diminishes rapidly for workers aged 45 years and older. Although the standard human capital investment model predicts such a decline, we also consider the possibility that returns to 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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6123.

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Length: 45 pages
Date of creation: Nov 2011
Date of revision:
Publication status: forthcoming in: Canadian Public Policy/Analyse de Politiques
Handle: RePEc:iza:izadps:dp6123

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Keywords: wages; productivity; linked employer-employee data; aging; firm-sponsored classroom training;

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References

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Citations

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Cited by:
  1. Göbel, Christian & Zwick, Thomas, 2013. "Are personnel measures effective in increasing productivity of old workers?," Labour Economics, Elsevier, Elsevier, vol. 22(C), pages 80-93.
  2. Vincent VANDENBERGHE, 2012. "Are firms willing to employ a greying and feminizing workforce?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2012016, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  3. Ci, Wen & Galdo, José & Voia, Marcel & Worswick, Christopher, 2013. "Does adult training benefit Canadian workers?," CLSSRN working papers, Vancouver School of Economics clsrn_admin-2013-42, Vancouver School of Economics, revised 26 Sep 2013.

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