The Relationship between Establishment Training and the Retention of Older Workers: Evidence from Germany

Peter B. Berg, Mary K. Hamman, Matthew M. Piszczek and Christopher Ruhm

No 21746, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In the coming years, a substantial portion of Germany’s workforce will retire, making it difficult for businesses to meet human capital needs. Training older workers may be a successful strategy for managing this demographic transition. This study examines relationships between establishment training programs, wages, and retirement among older men and women. Using unique matched establishment-employee data from Germany, the authors find that when establishments offer special training programs targeted at older workers, women—and especially lower wage women—are less likely to retire. Results suggest this relationship may be due to greater wage growth. For men, findings suggest establishment offer of inclusion in standard training programs may improve retention of low wage men, but analysis of pre-existing differences in establishment retirement patterns suggests this relationship may not be causal. Our research suggests targeted training programs likely play an important role in retaining and advancing careers of low wage older women.

JEL-codes: J15 J18 J2 J21 J24 J26 (search for similar items in EconPapers)
Date: 2015-11
New Economics Papers: this item is included in nep-age, nep-eur, nep-hrm and nep-lma
Note: AG LS PE
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Citations: View citations in EconPapers (2)

Published as Peter B. Berg & Mary K. Hamman & Matthew M. Piszczek & Christopher J. Ruhm, 2016. "The Relationship between Establishment Training and the Retention of Older Workers: Evidence from Germany," International Labour Review, .

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Working Paper: The Relationship Between Establishment Training and the Retention of Older Workers: Evidence from Germany (2015)
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