The Effect of Early Retirement Incentives on the Training Participation of Older Workers

25 Pages Posted: 27 Apr 2009

See all articles by Didier Fouarge

Didier Fouarge

Maastricht University

Trudie Schils

Maastricht University, Dept Economics; Amsterdam Institute of Advanced Labour Studies

Abstract

Human capital theory predicts that older workers are less likely to participate in on-the-job training than younger workers, due to lower net returns on such investments. Early retirement institutions are likely to affect these returns. Using the European Community Household Panel we show that older workers participate less in training, and that early retirement institutions do indeed matter. Generous early retirement schemes discourage older workers from taking part in training, whereas flexible early retirement schemes encourage this. Finally, the results suggest that in most European countries training can keep older workers longer in the labour market.

Suggested Citation

Fouarge, Didier and Schils, Trudie, The Effect of Early Retirement Incentives on the Training Participation of Older Workers. LABOUR, Vol. 23, Issue s1, pp. 85-109, March 2009. Available at SSRN: https://ssrn.com/abstract=1378380 or http://dx.doi.org/10.1111/j.1467-9914.2008.00441.x

Didier Fouarge (Contact Author)

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Trudie Schils

Maastricht University, Dept Economics ( email )

P.O.Box 616
Maastricht, 6200 MD
Netherlands
+31 43 3883891 (Phone)
+31 43 3884150 (Fax)

HOME PAGE: http://www.trudieschils.nl

Amsterdam Institute of Advanced Labour Studies ( email )

PLantage Muidergracht 12
Amsterdam, 1018 TV
Netherlands
+31 20 5254199 (Phone)
+31 20 5254301 (Fax)

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