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Training Participation of an Aging Workforce in an Internal Labor Market

Author

Listed:
  • Christian Pfeifer

    (Institute of Economics, Leuphana University of Lüneburg, Germany)

  • Simon Janssen

    (University Zurich, Institute for Strategy and Business Economics)

  • Philip Yang

    (Leibniz University Hannover, Institute of Labor Economics)

  • Uschi Backes-Gellner

    (University Zurich, Institute for Strategy and Business Economics)

Abstract

We use a long panel data set for four entry cohorts into an internal labor market to analyze the effect of age on the probability to participate in different training measures. We find that training participation probabilities are inverted u-shaped with age and that longer training measures are undertaken earlier in life and working career, respectively. These findings are consistent with predictions from a human capital model which incorporates amortization period and screening effects. Our results point to a market failure in the context of human capital investments to increase employability of older workers.

Suggested Citation

  • Christian Pfeifer & Simon Janssen & Philip Yang & Uschi Backes-Gellner, 2010. "Training Participation of an Aging Workforce in an Internal Labor Market," Working Paper Series in Economics 170, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:170
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    References listed on IDEAS

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    More about this item

    Keywords

    Age; Human capital; Internal labor markets; Training;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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