Retaining Through Training: Even for Older Workers

28 Pages Posted: 7 Apr 2011

See all articles by Matteo Picchio

Matteo Picchio

Marche Polytechnic University - Department of Economic and Social Science; IZA Institute of Labor Economics; SHERPPA - Ghent University

Jan C. van Ours

Tilburg University - Department of Economics; University of Melbourne - Department of Economics

Date Written: March 31, 2011

Abstract

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.

Keywords: training, employment, human capital, older workers

JEL Classification: C33, C35, J21, J24, M53

Suggested Citation

Picchio, Matteo and van Ours, Jan C., Retaining Through Training: Even for Older Workers (March 31, 2011). Available at SSRN: https://ssrn.com/abstract=1799909 or http://dx.doi.org/10.2139/ssrn.1799909

Matteo Picchio (Contact Author)

Marche Polytechnic University - Department of Economic and Social Science ( email )

Piazzale Martelli, 8
60121 Ancona
Italy
+39 071 220 7176 (Phone)

HOME PAGE: http://www.univpm.it/matteo.picchio

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

SHERPPA - Ghent University ( email )

Tweekerkenstraat 2
Ghent, B-9000
Belgium

Jan C. Van Ours

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2880 (Phone)
+31 13 466 3042 (Fax)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

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