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The effects of pension rights and retirement age on training participation: Evidence from a natural experiment

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  • Montizaan, Raymond
  • Cörvers, Frank
  • De Grip, Andries

Abstract

This paper uses a natural experiment approach to identify the effects of an exogenous change in future pension benefits on workers' training participation. We use unique matched survey and administrative data for male employees in the Dutch public sector who were born in 1949 or 1950. Only the latter were subjected to a major pension reform that diminished their pension rights. We find that this exogenous shock to pension rights postpones expected retirement and increases participation in training courses among older employees, although exclusively for those employed in large organizations.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:labeco:v:17:y:2010:i:1:p:240-247
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    Cited by:

    1. Pierre-Jean Messe & Benedicte Rouland, 2012. "Stricter employment protection and firms’ incentives to train: The case of French older workers," TEPP Working Paper 2012-04, TEPP.
    2. Picchio, Matteo & van Ours, Jan C., 2013. "Retaining through training even for older workers," Economics of Education Review, Elsevier, vol. 32(C), pages 29-48.
    3. Peter B. Berg & Mary K. Hamman & Matthew M. Piszczek & Christopher J. Ruhm, 2015. "The Relationship between Establishment Training and the Retention of Older Workers: Evidence from Germany," NBER Working Papers 21746, National Bureau of Economic Research, Inc.
    4. Bertoni, Marco & Brunello, Giorgio & Mazzarella, Gianluca, 2016. "Does postponing minimum retirement age improve healthy behaviours before retirement? Evidence from middle-aged Italian workers," ROA Research Memorandum 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    5. repec:eee:jhecon:v:58:y:2018:i:c:p:215-227 is not listed on IDEAS
    6. Messe, Pierre-Jean & Rouland, Bénédicte, 2014. "Stricter employment protection and firms' incentives to sponsor training: The case of French older workers," Labour Economics, Elsevier, vol. 31(C), pages 14-26.
    7. 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).
    8. Montizaan R.M. & Grip A. de & Fouarge D., 2015. "Training access, reciprocity, and expected retirement age," Research Memorandum 005, Maastricht University, Graduate School of Business and Economics (GSBE).
    9. repec:eee:jhecon:v:54:y:2017:i:c:p:66-78 is not listed on IDEAS
    10. Elisabetta Magnani, 2016. "Dissatisfaction with Working Time and Workers' Training Opportunities. Evidence from Matched Employer–Employee Data," Economic Papers, The Economic Society of Australia, vol. 35(2), pages 112-129, June.
    11. Brunello, Giorgio & Comi, Simona, 2013. "The Side Effect of Pension Reforms on Training: Evidence from Italy," IZA Discussion Papers 7755, Institute for the Study of Labor (IZA).
    12. 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).
    13. Matteo Picchio, 2015. "Is training effective for older workers?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 121-121, January.
    14. Sahlgren, Gabriel H., 2012. "Work ‘til You Drop: Short- and Longer-Term Health Effects of Retirement in Europe," Working Paper Series 928, Research Institute of Industrial Economics.
    15. Heller Sahlgren, Gabriel, 2016. "Retirement Blues," Working Paper Series 1114, Research Institute of Industrial Economics, revised 17 May 2017.
    16. repec:eee:joecag:v:6:y:2015:i:c:p:113-122 is not listed on IDEAS
    17. repec:eee:joecag:v:6:y:2015:i:c:p:163-175 is not listed on IDEAS

    More about this item

    Keywords

    Natural experiment Retirement Training;

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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