Retaining through Training: Even for Older Workers

Matteo Picchio and Jan C. van Ours

IZA DP No. 5591

2011

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.

Multiple or Simultaneous Equation Models: Panel Data Models, Spatio-temporal Models, Multiple or Simultaneous Equation Models: Discrete Regression and Qualitative Choice Models, Discrete Regressors, Proportions, Macroeconomics and Monetary Economics: General, Public Economics: General, Health: General, Labor Force and Employment, Size, and Structure, Human Capital, Skills, Occupational Choice, Labor Productivity, Personnel Economics: Training

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