Training and age-biased technical change

Luc Behaghel and Nathalie Greenan

Research Unit Working Papers from Laboratoire d'Economie Appliquee, INRA

Abstract: Can an ageing labour force sustain rapid technical and organisational changes? This depends on the ability of older workers to adapt their skills through training. Using a matched employer-employee dataset on the French manufacturing sector in the 1990s, we investigate whether training incidence increases in response to technical and organisational changes, and whether this response varies with age. In low-skill occupations, workers older than 50 suffer from reduced training incidence when firms implement advanced information technologies, in sharp contrast with the increased training incidence among workers younger than 50. But training responses are not systematically unfavourable to older workers; in particular, new organisational practices tend to raise training incidence among all groups of workers, regardless of age and occupation. The results hold when controlling for workers’ selection and when using instrumental variables to take into account the endogenous use of new technologies and new organisational practices. These findings confirm that technical change is biased against older low-skilled workers. But they also suggest that older age and a shorter career horizon do not constitute a systematic barrier to training. The difficulties faced by older low-skill workers born in the 1940s may rather be due to the fact that they lack the basic computer literacy that is a prerequisite for training in advanced IT.

Keywords: technical change; organisational change; training; older workers (search for similar items in EconPapers)
JEL-codes: J14 J24 J26 O30 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2007-03
New Economics Papers: this item is included in nep-bec and nep-lab
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http://www.inra.fr/Internet/Departements/ESR/UR/lea/documents/wp/wp0705.pdf (application/pdf)

Related works:
Journal Article: Training and Age-Biased Technical Change (2010)
Working Paper: Training and Age-Biased Technical Change (2010)
Working Paper: Training and Age-Biased Technical Change (2010)
Working Paper: Training and Age-Biased Technical Change: Evidence from French Micro Data (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:lea:leawpi:0705

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