The puzzle of non-participation in continuing training : an empirical study of chronic vs. temporary non-participation
"Although participation in continuing vocational training is often found to be associated with considerable individual benefits, a puzzlingly large number of people still do not take part in training. In order to solve the puzzle we distinguish between temporary and chronic non-participants. Previous studies have shown that training participants and non-participants differ in unobservable characteristics and therefore self-select into training or not. We show that even non-participants cannot be treated as a homogeneous group: there are those who never take part in training (chronic non-participants) and those who are not currently taking part (temporary (non-)participants). Using a unique data set of non-participants commissioned by the German 'Expert Commission on Financing Lifelong Learning' and covering a very large number of individuals not taking part in training, we separate and compare chronic and temporary non-participants. By estimating a sample selection model using maximum likelihood estimation we take potential selection effects into account: temporary (non-)participants may be more motivated or may have different inherent skills than chronic nonparticipants. We find that chronic non-participants would have higher costs than temporary (non-)participants and their short-term benefits associated with their current jobs would be lower. However, in the long run even chronic non-participants would benefit similarly from participation due to improved prospects on the labor market. The results indicate that chronic non-participants either misperceive future developments or suffer from an exceptionally high discount rate, which in turn leads in their view to a negative cost-benefit ratio for training." (Author's abstract, IAB-Doku) ((en)) Additional Information Kurzfassung (deutsch) Executive summary (English)
Volume (Year): 40 (2007)
Issue (Month): 2/3 ()
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References listed on IDEAS
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- Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 235-270, April.
- Stefan C. Wolter & Samuel Mühlemann & Jürg Schweri, 2006. "Why Some Firms Train Apprentices and Many Others Do Not," German Economic Review, Verein für Socialpolitik, vol. 7, pages 249-264, 08.
- Wolter, Stefan C. & Mühlemann, Samuel & Schweri, Jürg, 2003. "Why Some Firms Train Apprentices and Many Others Do Not," IZA Discussion Papers 916, Institute for the Study of Labor (IZA).
- Budría, Santiago & Pereira, Pedro T., 2004. "On the Returns to Training in Portugal," IZA Discussion Papers 1429, Institute for the Study of Labor (IZA).
- Groot, Wim, 1995. "The Wage Effects of Investments in Enterprise-Related Training," Empirical Economics, Springer, vol. 20(1), pages 133-147. Full references (including those not matched with items on IDEAS)
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