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Retaining through Training: Even for Older Workers

  • 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)

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.

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Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2011017.

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Date of creation: 29 Apr 2011
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Handle: RePEc:ctl:louvir:2011017
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