Private Returns to Training by Age in Quebec and Ontario

Abstract

In this report, we estimate returns to training (in terms of wages and productivity) using data from the Workplace and Employee survey from 199-2004 and investigate whether these returns vary with age. Although we find that the returns to training on wages is fairly constant across all age groups, we find that the returns to classroom training on productivity falls dramatically with age. For example, for Canada, we find that workers below 35 years of age who received training are 50% more productive relative to their non-trained counterparts. However, we also find that this differential falls to 5% for workers 55 years of age or older. This result suggests that the observed decreases in the incidence of training with age might be because firms first train workers for which productivity gains will be the highest.

Note: Downloadable document is in French.

Keywords: Firm-sponsored training, Aging, Returns to training, Productivity, Wages, Ontario, Quebec