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Default options and training participation

Author

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  • Borghans, L.

    (Macro, International & Labour Economics)

  • Golsteyn, B.H.H.

    (Macro, International & Labour Economics)

Abstract

This paper analyzes whether defaults affect the choice for courses followed at work. In addition, we analyze whether the size of the default effect varies with employees' personality and skill- deficiencies. We perform an experiment in which workers are hypothetically offered three courses which they can accept or exchange for other courses. Randomizing the default package of courses, we identify the default effect. Default courses are chosen approximately three times more often than other courses. They are chosen more often if people have skill-deficiencies in these courses, suggesting that people consider the default to be an advice. Women choose default courses more often than men. Women with less self-confidence and men with lower cognitive skills choose the default courses more often.

Suggested Citation

  • Borghans, L. & Golsteyn, B.H.H., 2013. "Default options and training participation," Research Memorandum 006, Maastricht University, Graduate School of Business and Economics (GSBE).
  • Handle: RePEc:unm:umagsb:2013006
    DOI: 10.26481/umagsb.2013006
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    Cited by:

    1. Borghans, Lex & Golsteyn, Bart H.H., 2015. "Susceptibility to default training options across the population," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 369-379.
    2. Rolando Herrero, 2017. "Integrating HEC with circuit breakers and multipath RTP to improve RTC media quality," Telecommunication Systems: Modelling, Analysis, Design and Management, Springer, vol. 64(1), pages 211-221, January.
    3. Altmann, Steffen & Falk, Armin & Grunewald, Andreas, 2013. "Incentives and Information as Driving Forces of Default Effects," IZA Discussion Papers 7610, Institute of Labor Economics (IZA).
    4. Jesús F. Salgado & Inmaculada Otero & Silvia Moscoso, 2019. "Cognitive Reflection and General Mental Ability as Predictors of Job Performance," Sustainability, MDPI, vol. 11(22), pages 1-16, November.
    5. Suvrat Dhanorkar & Enno Siemsen, 2021. "How Nudges Lead to Improved Energy Efficiency in Manufacturing: Evidence from Archival Data and a Field Study," Production and Operations Management, Production and Operations Management Society, vol. 30(10), pages 3735-3757, October.

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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I2 - Health, Education, and Welfare - - Education

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