Training in the Great Recession – Evidence from an Individual Perspective

34 Pages Posted: 14 Sep 2018 Last revised: 28 Mar 2019

See all articles by Daniel Dietz

Daniel Dietz

University of Würzburg

Thomas Zwick

University of Würzburg - Business Administration & Economics; Centre for European Economic Research (ZEW); Maastricht University - Research Centre for Education and the Labour Market (ROA)

Date Written: September 1, 2018

Abstract

This paper analyses the effect of the economic crisis in 2008 and 2009 on individual training activities of different employee groups within establishments. We use a unique German linked employer–employee panel data set with detailed information on individual training history (WeLL-ADIAB). The so-called Great Recession can be seen as an exogenous, unexpected, and time-limited shock. Therefore, our quasi-experimental setting using Diff-in-Diff analyses reveals the causal impact of the crisis on the training participation and the number of training measures. We find a direct negative effect of the crisis on individual training activities in 2009 and 2010. The negative effect therefore sets in with a time lag and lasts until after the recession. Furthermore, the recession effect is stronger for employees in unskilled jobs than for employees in skilled jobs.

Keywords: Training, Financial Crisis, Linked Employer Employee Data Set

JEL Classification: M53, O16

Suggested Citation

Dietz, Daniel and Zwick, Thomas, Training in the Great Recession – Evidence from an Individual Perspective (September 1, 2018). ZEW - Centre for European Economic Research Discussion Paper No. 18-037. Available at SSRN: https://ssrn.com/abstract=3245153 or http://dx.doi.org/10.2139/ssrn.3245153

Daniel Dietz (Contact Author)

University of Würzburg ( email )

Sanderring 2
Würzburg, D-97070
Germany

Thomas Zwick

University of Würzburg - Business Administration & Economics ( email )

Sanderring 2
Wuerzburg, D-97070
Germany

Centre for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Maastricht University - Research Centre for Education and the Labour Market (ROA) ( email )

P.O. Box 616
Maastricht, MD6200
Netherlands

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