Journal article

Retaining through training even for older workers

Matteo Picchio, Jan C van Ours

ECONOMICS OF EDUCATION REVIEW | PERGAMON-ELSEVIER SCIENCE LTD | Published : 2013

Abstract

This paper investigates whether on-the-job training has an effect on the employability of workers. Using data from the Netherlands we disentangle the true effect of training incidence from the spurious one determined by unobserved individual heterogeneity. We also take into account that there might be feedback from shocks in the employment status to future propensity of receiving firm-provided training. We find that firm-provided training significantly increases future employment prospects. This also holds for older workers, suggesting that firm-provided training may be an important instrument to retain older workers at work. © 2012 Elsevier Ltd.

University of Melbourne Researchers