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The Side Effect of Pension Reforms on Training: Evidence from Italy

  • Brunello, Giorgio

    ()

    (University of Padova)

  • Comi, Simona

    ()

    (University of Milan Bicocca)

Due to pension reforms, minimum retirement age increased substantially in Italy between the second part of the 1990s and the early 2000s. We compare the training participation of pre- and post-reform cohorts of private sector employees and estimate that adding one year to minimum retirement age increases training incidence by 6.9 to 10.7 percent, depending on the empirical specification. We find that policies that increase the residual working horizon are effective in increasing training participation by senior workers, and that traditional training policies that aim at reducing training costs by providing subsidies are ineffective.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7755.

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Length: 25 pages
Date of creation: Nov 2013
Date of revision:
Publication status: forthcoming in: The Journal of Economics of Aging
Handle: RePEc:iza:izadps:dp7755
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References listed on IDEAS
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  1. 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).
  2. Montizaan, Raymond & Cörvers, Frank & de Grip, Andries, 2009. "The Effects of Pension Rights and Retirement Age on Training Participation: Evidence from a Natural Experiment," IZA Discussion Papers 4462, Institute for the Study of Labor (IZA).
  3. Laura Abramovsky & Erich Battistin & Emla Fitzsimons & Alissa Goodman & Helen Simpson, 2011. "Providing Employers with Incentives to Train Low-SkilledWorkers: Evidence from the UK Employer Training Pilots," Journal of Labor Economics, University of Chicago Press, vol. 29(1), pages 153-193, 01.
  4. Viola Angelini & Agar Brugiavini & Guglielmo Weber, 2009. "Ageing and unused capacity in Europe: is there an early retirement trap?," Economic Policy, CEPR;CES;MSH, vol. 24, pages 463-508, 07.
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