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The Benefits of Adult Learning: Work-Related Training, Social Capital, and Earnings

Author

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  • Jens Ruhose
  • Stephan L. Thomsen
  • Insa Weilage

Abstract

We propose a regression-adjusted matched difference-in-differences framework to estimate pecuniary and non-pecuniary returns to adult education. This approach combines kernel matching with entropy balancing to account for selection bias and sorting on gains. Using data from the German SOEP, we evaluate the effect of work-related training, which represents the largest portion of adult education in OECD countries, on individual social capital and earnings. As the related literature, we estimate positive monetary returns to work-related training. In addition, training participation increases participation in civic, political, and cultural activities while not crowding out social participation. Results are robust against a variety of potentially confounding explanations. These findings imply positive externalities from work-related training over and above the well-documented labor market effects.

Suggested Citation

  • Jens Ruhose & Stephan L. Thomsen & Insa Weilage, 2019. "The Benefits of Adult Learning: Work-Related Training, Social Capital, and Earnings," Economics of Education Working Paper Series 0167, University of Zurich, Department of Business Administration (IBW).
    • Handle: RePEc:iso:educat:0167
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    2. Keyon Vafa & Emil Palikot & Tianyu Du & Ayush Kanodia & Susan Athey & David M. Blei, 2022. "CAREER: A Foundation Model for Labor Sequence Data," Papers 2202.08370, arXiv.org, revised Feb 2024.
    3. Tobias Schultheiss & Uschi Backes‐Gellner, 2023. "Different degrees of skill obsolescence across hard and soft skills and the role of lifelong learning for labor market outcomes," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 62(3), pages 257-287, July.
    4. Fürstenau, Elisabeth & Gohl, Niklas & Haan, Peter & Weinhardt, Felix, 2023. "Working life and human capital investment: Causal evidence from a pension reform," Labour Economics, Elsevier, vol. 84(C).
    5. Klauser, Roman & Tamm, Marcus, 2023. "Technological Change and Returns to Training," IZA Discussion Papers 16659, Institute of Labor Economics (IZA).
    6. Najah Attig, 2024. "Relaxed Financial Constraints and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 189(1), pages 111-131, January.
    7. 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).
    8. Aisa, Rosa & Cabeza, Josefina & Martin, Jorge, 2023. "Automation and aging: The impact on older workers in the workforce," The Journal of the Economics of Ageing, Elsevier, vol. 26(C).
    9. Gohl, Niklas & Haan, Peter & Kurz, Elisabeth & Weinhardt, Felix, 2020. "Working Life and Human Capital Investment: Causal Evidence from Pension Reform," IZA Discussion Papers 12891, Institute of Labor Economics (IZA).
    10. Niklas Gohl & Peter Haan & Elisabeth Kurz & Felix Weinhardt, 2021. "Working life and human capital investment," CEP Discussion Papers dp1753, Centre for Economic Performance, LSE.

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    More about this item

    Keywords

    social capital; earnings; work-related training; matched difference-in-differences approach; entropy balancing;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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