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

  • Benoit Dostie
  • Pierre Thomas Léger

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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File URL: http://www.cirano.qc.ca/files/publications/2011s-69.pdf
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Paper provided by CIRANO in its series CIRANO Working Papers with number 2011s-69.

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Length: 45 pages
Date of creation: 01 Nov 2011
Date of revision:
Handle: RePEc:cir:cirwor:2011s-69
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