Firm-Sponsored Classroom Training: Is it Worth it for Older Workers?
HEC Montreal - Institute of Applied Economics; Institute for the Study of Labor (IZA)
Pierre Thomas Léger
HEC Montreal - Institute of Applied Economics
IZA Discussion Paper No. 6123
We use longitudinal linked employer-employee data and find that the probability of participating in firm-sponsored classroom training diminishes rapidly for workers aged 45 years and older. Although the standard human capital investment model predicts such a decline, we also consider the possibility that returns to training decline with age. Taking into account endogenous training decisions, we find that the training wage premium diminishes only slightly with age. However, estimates of the impact of training on productivity decrease dramatically with age, suggesting that incentives for firms to invest in classroom training are much lower for older workers.
Number of Pages in PDF File: 45
Keywords: wages, productivity, linked employer-employee data, aging, firm-sponsored classroom training
JEL Classification: C23, D24, J31working papers series
Date posted: November 28, 2011
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