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Retaining through Training: Even for Older Workers

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  • Matteo PICCHIO

    (Tilburg University, CentER, ReflecT, The Netherlands and IZA, Germany)

  • Jan C. van OURS

    (Tilburg University, CentER, ReflecT, The Netherlands, University of Melbourne, Australia, CESifo, Germany, CEPR, United Kingdom and IZA, Germany)

Abstract

This paper investigates whether on-the-job training has an effect on the employability of workers. Using data from the Netherlands we disentangle the true effect of training incidence from the spurious one determined by unobserved individual heterogeneity. We also take into account that there might be feedback from shocks in the employment status to future propensity of receiving firm-provided training. We find that firm-provided training significantly increases future employment prospects. This finding is robust to a number of robustness checks. It also holds for older workers, suggesting that firm-provided training may be an important instrument to retain older workers at work.

Suggested Citation

  • Matteo PICCHIO & Jan C. van OURS, 2011. "Retaining through Training: Even for Older Workers," LIDAM Discussion Papers IRES 2011017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:2011017
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    More about this item

    Keywords

    training; employment; human capital; older workers;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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