The Puzzle of Non-Participation in Continuing Training – An Empirical Study of Permanent vs. Occasional 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. We argue that in order to solve the puzzle it is important to take selection effects into account when studying the returns to education. It has already been established that training participants and non-participants differ in unobservable charac-teristics and therefore self-select into training or not. We show that even non-participants cannot be treated as a homogeneous group: there are individuals who never take part in training (permanent non-participants) and individuals currently not taking part (occasional non-participants). Using a unique data set of non-participants we sepa-rate and compare those two groups. We find that, if they participated, permanent non-participants would have higher costs than occasional non-participants and the benefits associated with their current jobs would be lower. However, even permanent non-participants would benefit from participation in terms of improved prospects on the la-bor market. The results indicate that permanent non-participants either misperceive fu-ture developments or suffer from an exceptionally high discount rate, which in turn leads in their view to a negative cost-benefit ratio for training.
|Date of creation:||Aug 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: ++41 1 634 29 27
Fax: ++41 1 634 43 48
Web page: http://www.isu.uzh.ch
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andrew Jenkins & Anna Vignoles & Alison Wolf & Fernando Galindo-Rueda, 2003. "The determinants and labour market effects of lifelong learning," Applied Economics, Taylor & Francis Journals, vol. 35(16), pages 1711-1721.
- Pfeiffer, Friedhelm, 2000. "Training and individual performance in Europe: evidence from microeconometric studies," ZEW Discussion Papers 00-28, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Leuven, Edwin & Oosterbeek, Hessel, 2002. "A New Approach to Estimate the Wage Returns to Work-Related Training," IZA Discussion Papers 526, 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 133-47.
- Puhani, Patrick A., 1997. "Foul or Fair?," ZEW Discussion Papers 97-07, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Spitz, Alexandra, 2004. "Are Skill Requirements in the Workplace Rising? Stylized Facts and Evidence on Skill-Biased Technological Change," ZEW Discussion Papers 04-33, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- repec:dgr:uvatin:20020091 is not listed on IDEAS
- 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).
- Anna Vignoles & Fernando Galindo-Rueda & Leon Feinstein, 2004.
"The Labour Market Impact of Adult Education and Training: A Cohort Analysis,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 51(2), pages 266-280, 05.
- Leon Feinstein & Fernando Galindo-Rueda & Anna Vignoles, 2004. "The labour market impact of adult education and training: a cohort analysis," LSE Research Online Documents on Economics 19470, London School of Economics and Political Science, LSE Library.
- L Feinstein & Fernando Galindo-Rueda & Anna Vignoles, 2004. "The Labour Market Impact of Adult Education and Training: A cohort analysis," CEE Discussion Papers 0036, Centre for the Economics of Education, LSE.
- Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA).
- Lucy Chennells & John Van Reenen, 1999. "Has technology hurt less skilled workers? A survey of the micro-econometric evidence," IFS Working Papers W99/27, Institute for Fiscal Studies.
- Budría, Santiago & Pereira, Pedro T., 2004. "On the Returns to Training in Portugal," IZA Discussion Papers 1429, Institute for the Study of Labor (IZA).
- Juliane List & Claus Schnabel, 2004. "Bildungsstagnation bei abnehmender Erwerbsbevölkerung," List Forum Chapter, in: List Forum Band 30, edition 1, volume 4, chapter 24, pages 368-388 List Gesellschaft e.V..
- Joshua Angrist & Victor Lavy, 2009. "The Effects of High Stakes High School Achievement Awards: Evidence from a Randomized Trial," American Economic Review, American Economic Association, vol. 99(4), pages 1384-1414, September.
- Puhani, Patrick A, 2000. " The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
- Hill, Elizabeth T., 2001. "Post-school-age training among women: training methods and labor market outcomes at older ages," Economics of Education Review, Elsevier, vol. 20(2), pages 181-191, April.
- Groot, Wim & van den Brink, Henriette Maassen, 2003. "Firm-related training tracks: a random effects ordered probit model," Economics of Education Review, Elsevier, vol. 22(6), pages 581-589, December.
When requesting a correction, please mention this item's handle: RePEc:iso:wpaper:0058. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IBW IT)
If references are entirely missing, you can add them using this form.