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

45 Pages Posted: 28 Nov 2011

See all articles by Benoit Dostie

Benoit Dostie

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

Pierre Thomas Léger

HEC Montreal - Institute of Applied Economics

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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: wages, productivity, linked employer-employee data, aging, firm-sponsored classroom training

JEL Classification: C23, D24, J31

Suggested Citation

Dostie, Benoit and Léger, Pierre Thomas, Firm-Sponsored Classroom Training: Is it Worth it for Older Workers?. IZA Discussion Paper No. 6123, Available at SSRN: https://ssrn.com/abstract=1965140

Benoit Dostie (Contact Author)

HEC Montreal - Institute of Applied Economics ( email )

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IZA Institute of Labor Economics

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Pierre Thomas Léger

HEC Montreal - Institute of Applied Economics ( email )

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

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