Working life and human capital investment
Elisabeth Kurz and
LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library
This paper provides a novel test of a key prediction of human capital theory that educational investment decisions depend on the length of the pay-off period. We obtain causal estimates by leveraging a unique reform of the German public pension system that, across a sharp date-of-birth cutoff, increased the early retirement age by three years. Using RDD, DiD, and IV estimation strategies on census and householdpanel data, we show that this reform causally increased educational investment in the form of on-thejob training. In contrast, non-job related training before retirement was not affected. We explore heterogeneity and additional outcomes.
Keywords: human capital; retirement policies; RDD (search for similar items in EconPapers)
JEL-codes: H21 J24 J26 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-cfn, nep-eur and nep-hrm
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:114422
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