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The Relationship Between Establishment Training and the Retention of Older Workers: Evidence from Germany

Author

Listed:
  • Berg, Peter B.

    (Michigan State University)

  • Hamman, Mary K.

    (University of Wisconsin, La Crosse)

  • Piszczek, Matthew

    (University of Wisconsin, Oshkosh)

  • Ruhm, Christopher J.

    (University of Virginia)

Abstract

In the coming years, a substantial portion of Germany's workforce will retire, making it difficult for businesses to meet human capital needs. Training older workers may be a successful strategy for managing this demographic transition. This study examines relationships between establishment training programs, wages, and retirement among older men and women. Using unique matched establishment-employee data from Germany, the authors find that when establishments offer special training programs targeted at older workers, women – and especially lower wage women – are less likely to retire. Results suggest this relationship may be due to greater wage growth. For men, findings suggest establishment offer of inclusion in standard training programs may improve retention of low wage men, but analysis of pre-existing differences in establishment retirement patterns suggests this relationship may not be causal. Our research suggests targeted training programs likely play an important role in retaining and advancing careers of low wage older women.

Suggested Citation

  • Berg, Peter B. & Hamman, Mary K. & Piszczek, Matthew & Ruhm, Christopher J., 2015. "The Relationship Between Establishment Training and the Retention of Older Workers: Evidence from Germany," IZA Discussion Papers 9508, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9508
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    References listed on IDEAS

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    Cited by:

    1. Hinz, Tina, 2016. "Personnel policy adjustments when apprentice positions are unfilled: Evidence from German establishment data," Discussion Papers 99, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    2. Kerndler, Martin, 2016. "Contracting frictions and inefficient layoffs of older workers," VfS Annual Conference 2016 (Augsburg): Demographic Change 145711, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    establishment training; retirement; workforce training;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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