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The side effect of pension reforms on the training of older workers. Evidence from Italy

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  • Brunello, Giorgio
  • Comi, Simona

Abstract

Due to pension reforms, minimum retirement age in Italy increased substantially above age 50 between the second part of the 1990s and the early 2000s. We evaluate whether these reforms affected training participation by private sector employees aged 40–54, who entered their fifties during the relevant years. We find evidence of a sizeable effect: our estimates suggest a 9% increase in training incidence following a one-year increase in minimum retirement age. We also show that, while policies that increase the residual working horizon are effective in increasing training participation by senior workers in their forties and early fifties, traditional training policies that aim at reducing training costs by providing subsidies are ineffective.

Suggested Citation

  • Brunello, Giorgio & Comi, Simona, 2015. "The side effect of pension reforms on the training of older workers. Evidence from Italy," The Journal of the Economics of Ageing, Elsevier, vol. 6(C), pages 113-122.
  • Handle: RePEc:eee:joecag:v:6:y:2015:i:c:p:113-122
    DOI: 10.1016/j.jeoa.2015.02.001
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    File URL: http://www.sciencedirect.com/science/article/pii/S2212828X15000031
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    References listed on IDEAS

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    1. James Heckman, 2011. "Policies to foster human capital," Educational Studies, Higher School of Economics, issue 3, pages 73-137.
    2. Laura Abramovsky & Erich Battistin & Emla Fitzsimons & Alissa Goodman & Helen Simpson, 2011. "Providing Employers with Incentives to Train Low-SkilledWorkers: Evidence from the UK Employer Training Pilots," Journal of Labor Economics, University of Chicago Press, vol. 29(1), pages 153-193, January.
    3. Jean-Olivier Hairault & Francois Langot & Thepthida Sopraseuth, 2010. "Distance to Retirement and Older Workers' Employment: The Case for Delaying the Retirement Age," Journal of the European Economic Association, MIT Press, vol. 8(5), pages 1034-1076, September.
    4. Montizaan, Raymond & Cörvers, Frank & De Grip, Andries, 2010. "The effects of pension rights and retirement age on training participation: Evidence from a natural experiment," Labour Economics, Elsevier, vol. 17(1), pages 240-247, January.
    5. Didier Fouarge & Trudie Schils, 2009. "The Effect of Early Retirement Incentives on the Training Participation of Older Workers," LABOUR, CEIS, vol. 23(s1), pages 85-109, March.
    6. Brunello, Giorgio & Comi, Simona Lorena & Sonedda, Daniela, 2012. "Training subsidies and the wage returns to continuing vocational training," Labour Economics, Elsevier, vol. 19(3), pages 361-372.
    7. Conti, Gabriella, 2005. "Training, productivity and wages in Italy," Labour Economics, Elsevier, vol. 12(4), pages 557-576, August.
    8. Viola Angelini & Agar Brugiavini & Guglielmo Weber, 2009. "Ageing and unused capacity in Europe: is there an early retirement trap?," Economic Policy, CEPR;CES;MSH, vol. 24, pages 463-508, July.
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    Cited by:

    1. repec:eee:jhecon:v:58:y:2018:i:c:p:215-227 is not listed on IDEAS
    2. Ann Barbara Bauer & Reiner Eichenberger, 2017. "Endogenous aging: How statutory retirement age drives human and social capital," CREMA Working Paper Series 2017-02, Center for Research in Economics, Management and the Arts (CREMA).
    3. Engl, Florian & Riedl, Arno & Weber, Roberto A., 2016. "Spillover Effects of Institutions on Cooperative Behavior, Preferences, and Beliefs," Research Memorandum 016, Maastricht University, Graduate School of Business and Economics (GSBE).
    4. Bertoni, Marco & Brunello, Giorgio & Mazzarella, Gianluca, 2018. "Does postponing minimum retirement age improve healthy behaviors before retirement? Evidence from middle-aged Italian workers," Journal of Health Economics, Elsevier, vol. 58(C), pages 215-227.
    5. Ann Barbara Bauer & Reiner Eichenberger, 2018. "Worsening Workers' Health by Lowering Retirement Age: The Malign Consequences of a Benign Reform," CREMA Working Paper Series 2018-02, Center for Research in Economics, Management and the Arts (CREMA).

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    Keywords

    Pension reforms; Training; Italy;

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