Training Access, Reciprocity and Expected Retirement Age

44 Pages Posted: 28 Jan 2015

See all articles by Raymond Michel Montizaan

Raymond Michel Montizaan

Maastricht University - Department of Accounting and Information Management

Andries de Grip

Maastricht School of Business and Economics; IZA Institute of Labor Economics

Didier Fouarge

Maastricht University

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Date Written: December 31, 2014

Abstract

This paper investigates whether employers can induce employees to postpone retirement by offering access to training courses that maintain job proficiency. We use unique, matched employer-employee surveys for the Dutch public sector, which include detailed information on a wide range of HR practices applied in the organization, as well as the expected retirement age of its employees. We find that training policies, as reported by employers, are significantly positively related to employee expected retirement age, irrespective of whether employees actually participate in training. We show that this positive relationship is driven by employees’ positive reciprocal inclinations, indicating that provision of training may serve as a tool to motivate older employees in their job and consequently to retire later. The provision of training access may therefore complement existing pension reforms in many industrialized countries that aim to increase labor-force participation of older workers. Robustness analyses indicate that the relationship between offering training access and expected age of retirement is unlikely to be driven by reverse causality, self-selection, or the presence of other organizational characteristics.

Keywords: Training access, reciprocity and retirement

JEL Classification: J24, J31, I2

Suggested Citation

Montizaan, Raymond Michel and de Grip, Andries and Fouarge, Didier, Training Access, Reciprocity and Expected Retirement Age (December 31, 2014). Netspar Discussion Paper No. 12/2014-059, Available at SSRN: https://ssrn.com/abstract=2556755 or http://dx.doi.org/10.2139/ssrn.2556755

Raymond Michel Montizaan (Contact Author)

Maastricht University - Department of Accounting and Information Management ( email )

Netherlands

Andries De Grip

Maastricht School of Business and Economics ( email )

P. O. Box 616
Maastricht, NL 6200 MD
Netherlands

IZA Institute of Labor Economics

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

Didier Fouarge

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

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