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Training Participation of an Aging Workforce in an Internal Labor Market

Listed author(s):
  • Christian Pfeifer

    ()

    (Institute of Economics, Leuphana University of Lüneburg, Germany)

  • Simon Janssen

    ()

    (University Zurich, Institute for Strategy and Business Economics)

  • Philip Yang

    ()

    (Leibniz University Hannover, Institute of Labor Economics)

  • Uschi Backes-Gellner

    ()

    (University Zurich, Institute for Strategy and Business Economics)

We use a long panel data set for four entry cohorts into an internal labor market to analyze the effect of age on the probability to participate in different training measures. We find that training participation probabilities are inverted u-shaped with age and that longer training measures are undertaken earlier in life and working career, respectively. These findings are consistent with predictions from a human capital model which incorporates amortization period and screening effects. Our results point to a market failure in the context of human capital investments to increase employability of older workers.

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File URL: http://www.leuphana.de/fileadmin/user_upload/Forschungseinrichtungen/ifvwl/WorkingPapers/wp_170_Upload.pdf
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Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 170.

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Length: 43 pages
Date of creation: May 2010
Handle: RePEc:lue:wpaper:170
Contact details of provider: Web page: http://leuphana.de/institute/ivwl.html

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