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Who Benefits from Training Courses in Germany? Monetary Returns to Non-formal Further Education on a Segmented Labour Market

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  • Ehlert, Martin

Abstract

While many advocate ‘lifelong learning’ as the ideal career model, its impact on workers’ lives is still partly unclear. Especially research on monetary returns to further education has yielded mixed evidence. I argue that a thorough assessment has to consider both the types of courses and the segmentation of labour markets. Using data from the German National Educational Panel Study, I test explanations of differing returns to non-formal further education in Germany, a country known for its highly segmented labour market. Results confirm that the returns to short non-formal training courses, which are the most common forms of further education in Germany, differ remarkably between types of courses and segments. Employer-mandated courses yield the highest returns, which is especially pronounced in internal labour markets. Furthermore, there are no returns on closed occupational labour markets. In occupations, where formal credentials are less important, returns to training are present. These results suggest that returns depend less on individual decisions to invest in training and more on the context. Hence, these findings go against human capital explanations and instead support implications of the Job Competition Model and Credentialism, which emphasize the importance of labour market structure.

Suggested Citation

  • Ehlert, Martin, 2017. "Who Benefits from Training Courses in Germany? Monetary Returns to Non-formal Further Education on a Segmented Labour Market," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 33(3), pages 436-448.
  • Handle: RePEc:zbw:espost:215705
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    References listed on IDEAS

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    Cited by:

    1. Teresa Backhaus, 2022. "Training in Late Careers - A Structural Approach," CRC TR 224 Discussion Paper Series crctr224_2022_382, University of Bonn and University of Mannheim, Germany.
    2. Kleinert, Corinna & Zoch, Gundula & Vicari, Basha & Ehlert, Martin, 2021. "Work-related online learning during the COVID-19 pandemic in Germany [Berufsbezogenes Online-Lernen während der COVID-19-Pandemie in Deutschland]," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 44(3), pages 197-214.
    3. Kruppe, Thomas & Mühlhan, Jannek & Weber, Enzo & Wiemers, Jürgen, 2019. "Gesamtfiskalische Wirkungen von Weiterbildungsförderung: Öffentliche Ausgaben generieren hohe Rückflüsse," IAB-Kurzbericht 201908, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Bachmann, Ronald & Boockmann, Bernhard & Cim, Merve & Felder, Rahel & Frings, Hanna & Janisch, Laura M. & Schaffner, Sandra & Späth, Jochen & Tamm, Marcus, 2018. "Vergleich von Datenquellen für eine Analyse von Übergängen am Arbeitsmarkt: Studie im Auftrag der Mindestlohnkommission," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 180217, March.
    5. Simon Reinwald & Silvia Annen, 2023. "Influence of Gender and Prior Education Intersectionality on Further Education Investments and Job Satisfaction," SAGE Open, , vol. 13(2), pages 21582440231, June.
    6. Denzler, Stefan & Ruhose, Jens & Wolter, Stefan C., 2022. ""The Double Dividend of Training" – Labor Market Effects of Work-Related Continuous Education in Switzerland," IZA Discussion Papers 15619, Institute of Labor Economics (IZA).
    7. Britta Gauly & Clemens M Lechner, 2019. "Self-perfection or self-selection? Unraveling the relationship between job-related training and adults’ literacy skills," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-23, May.
    8. Ebner, Christian & Ehlert, Martin, 2018. "Weiterbilden und Weiterkommen? Non-formale berufliche Weiterbildung und Arbeitsmarktmobilität in Deutschland," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 70(2), pages 213-235.

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