Firm-Sponsored Classroom Training: Is it Worth it for Older Workers?

45 Pages Posted: 25 Nov 2011

See all articles by Benoit Dostie

Benoit Dostie

HEC Montreal - Institute of Applied Economics; IZA Institute of Labor Economics

Pierre Thomas Leger

HEC Montréal, CIRANO and CIRPÉE

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Date Written: November 23, 2011

Abstract

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.

Keywords: Firm-Sponsored classroom training, impact of training, training wage premium, linked employer-employee data, productivity, aging

Suggested Citation

Dostie, Benoit and Leger, Pierre Thomas, Firm-Sponsored Classroom Training: Is it Worth it for Older Workers? (November 23, 2011). CIRANO - Scientific Publications 2011s-69, Available at SSRN: https://ssrn.com/abstract=1963790 or http://dx.doi.org/10.2139/ssrn.1963790

Benoit Dostie (Contact Author)

HEC Montreal - Institute of Applied Economics ( email )

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HOME PAGE: http://www.hec.ca/profs/benoit.dostie.html

IZA Institute of Labor Economics

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Pierre Thomas Leger

HEC Montréal, CIRANO and CIRPÉE ( email )

3000, ch. de la Côte-Ste-Catherine
Montréal, Quebec H3T 2A7
Canada

HOME PAGE: http://www.hec.ca/pages/pierre-thomas.leger

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