The Relationship between Establishment Training and the Retention of Older Workers: Evidence from Germany

47 Pages Posted: 23 Nov 2015 Last revised: 3 Jun 2021

See all articles by Peter Berg

Peter Berg

Michigan State University - School of Human Resources and Labor Relations

Mary K. Hamman

University of Wisconsin - La Crosse

Matthew Piszczek

University of Wisconsin - Oshkosh - College of Business

Christopher J. Ruhm

University of Virginia - Frank Batten School of Leadership and Public Policy; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: November 2015

Abstract

In the coming years, a substantial portion of Germany’s workforce will retire, making it difficult for businesses to meet human capital needs. Training older workers may be a successful strategy for managing this demographic transition. This study examines relationships between establishment training programs, wages, and retirement among older men and women. Using unique matched establishment-employee data from Germany, the authors find that when establishments offer special training programs targeted at older workers, women—and especially lower wage women—are less likely to retire. Results suggest this relationship may be due to greater wage growth. For men, findings suggest establishment offer of inclusion in standard training programs may improve retention of low wage men, but analysis of pre-existing differences in establishment retirement patterns suggests this relationship may not be causal. Our research suggests targeted training programs likely play an important role in retaining and advancing careers of low wage older women.

Suggested Citation

Berg, Peter and Hamman, Mary K. and Piszczek, Matthew and Ruhm, Christopher J., The Relationship between Establishment Training and the Retention of Older Workers: Evidence from Germany (November 2015). NBER Working Paper No. w21746, Available at SSRN: https://ssrn.com/abstract=2694413

Peter Berg (Contact Author)

Michigan State University - School of Human Resources and Labor Relations ( email )

368 Farm Lane, S402
East Lansing, MI 48824
United States

Mary K. Hamman

University of Wisconsin - La Crosse ( email )

1725 State Street
La Crosse, WI 54601
United States

Matthew Piszczek

University of Wisconsin - Oshkosh - College of Business ( email )

United States

Christopher J. Ruhm

University of Virginia - Frank Batten School of Leadership and Public Policy ( email )

235 McCormick Rd.
P.O. Box 400893
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HOME PAGE: http://batten.virginia.edu/cruhm.html

National Bureau of Economic Research (NBER) ( email )

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IZA Institute of Labor Economics ( email )

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Bonn, D-53072
Germany

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