Unemployment and the Demand for Retraining: An Econometric Analysis

H L Allen, B McCormick and R J O'Brien

Economic Journal, 1991, vol. 101, issue 405, 190-201

Abstract: This paper describes and estimates a human capital model of whether unemployed workers seek retraining, and the timing of an application in an unemployment spell. The authors find that the probability of seeking retraining declines with age after twenty-seven years; with being attached to noncontracting industries; with greater contentment in unemployment compared with last job; and with union membership. Applications are increased by formal qualifications (CSE/O/A level) and decreased by vocational training, relative to no qualifications. Almost half the unemployed had sought retraining, and this was largely complete after nine months--below the mean interrupted unemployment duration. Copyright 1991 by Royal Economic Society.

Date: 1991
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