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The Side Effect of Pension Reforms on Training: Evidence from Italy

Author

Listed:
  • Brunello, Giorgio

    (University of Padova)

  • Comi, Simona Lorena

    (University of Milano-Bicocca)

Abstract

Due to pension reforms, minimum retirement age increased substantially in Italy between the second part of the 1990s and the early 2000s. We compare the training participation of pre- and post-reform cohorts of private sector employees and estimate that adding one year to minimum retirement age increases training incidence by 6.9 to 10.7 percent, depending on the empirical specification. We find that policies that increase the residual working horizon are effective in increasing training participation by senior workers, and that traditional training policies that aim at reducing training costs by providing subsidies are ineffective.

Suggested Citation

  • Brunello, Giorgio & Comi, Simona Lorena, 2013. "The Side Effect of Pension Reforms on Training: Evidence from Italy," IZA Discussion Papers 7755, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7755
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    References listed on IDEAS

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    1. Erich Battistin & Agar Brugiavini & Enrico Rettore & Guglielmo Weber, 2009. "The Retirement Consumption Puzzle: Evidence from a Regression Discontinuity Approach," American Economic Review, American Economic Association, vol. 99(5), pages 2209-2226, December.
    2. Viola Angelini & Agar Brugiavini & Guglielmo Weber, 2009. "Ageing and unused capacity in Europe: is there an early retirement trap? [‘The strategic bequest motive: evidence from SHARE’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 24(59), pages 463-508.
    3. Giorgio Brunello & Pietro Garibaldi & Etienne Wasmer, 2007. "Education and training in Europe," SciencePo Working papers Main hal-03415950, HAL.
    4. Giorgio Brunello & Monica Langella, 2013. "Bridge jobs in Europe," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-18, December.
    5. Montizaan, Raymond & Cörvers, Frank & De Grip, Andries, 2010. "The effects of pension rights and retirement age on training participation: Evidence from a natural experiment," Labour Economics, Elsevier, vol. 17(1), pages 240-247, January.
    6. Laura Abramovsky & Erich Battistin & Emla Fitzsimons & Alissa Goodman & Helen Simpson, 2011. "Providing Employers with Incentives to Train Low-SkilledWorkers: Evidence from the UK Employer Training Pilots," Journal of Labor Economics, University of Chicago Press, vol. 29(1), pages 153-193, January.
    7. Brunello, Giorgio & Garibaldi, Pietro & Wasmer, Etienne (ed.), 2007. "Education and Training in Europe," OUP Catalogue, Oxford University Press, number 9780199210978.
    8. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute of Labor Economics (IZA).
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    Citations

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    Cited by:

    1. Montizaan, R.M. & de Grip, A. & Fouarge, D., 2015. "Training access, reciprocity, and expected retirement age," Research Memorandum 005, Maastricht University, Graduate School of Business and Economics (GSBE).
    2. Niklas Gohl, 2023. "Working Longer, Working Stronger? The Forward-Looking Effects of Increasing the Retirement Age on (Un)employment Behaviour," CEPA Discussion Papers 63, Center for Economic Policy Analysis.
    3. Bertoni, Marco & Brunello, Giorgio & Mazzarella, Gianluca, 2018. "Does postponing minimum retirement age improve healthy behaviors before retirement? Evidence from middle-aged Italian workers," Journal of Health Economics, Elsevier, vol. 58(C), pages 215-227.
    4. Gohl, Niklas & Haan, Peter & Kurz, Elisabeth & Weinhardt, Felix Julian, 2021. "Working life and human capital investment," LSE Research Online Documents on Economics 114422, London School of Economics and Political Science, LSE Library.
    5. Niklas Gohl, 2023. "Working Longer, Working Stronger? The Forward-Looking Effects of Increasing the Retirement Age on (Un)employment Behaviour," Berlin School of Economics Discussion Papers 0013, Berlin School of Economics.
    6. 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).
    7. 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

    pension reforms; training; Italy;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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