Training Background and Early Retirement
Raymond Montizaan (),
Frank Cörvers () and
Andries de Grip ()
No 3504, IZA Discussion Papers from Institute for the Study of Labor (IZA)
Several studies show that employees with firm-specific skills are more likely to be covered by employer-sponsored pension schemes than workers with general skills. Therefore it can be expected that workers with firm-specific skills retire earlier. This paper tests this prediction using US data from the National Longitudinal Survey of Older Men. We find that workers who participated in firm-specific training in their early careers retire earlier than workers with a general training background. This indicates that shared investments in firm-specific training are embedded in implicit contracts that induce early retirement. The results remain robust when controlling for technological change and work commitment.
Keywords: retirement; deferred compensation; training (search for similar items in EconPapers)
JEL-codes: J14 J26 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-hrm and nep-lab
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Published as 'Training and retirement patterns' in: Applied Economics, 2013, 45 (15), 1991-1999
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