Training and wages of older workers in Europe

The financial deficits of many social security systems caused by ageing populations and stagnating economies are forcing workers to retire later from the labour market. An extended working life, combined with rapid technological progress in many sectors, is likely making older workers’ skills obtain...

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Bibliographic Details
Published in:European journal of ageing 2015-03, Vol.12 (1), p.7-16
Main Authors: Belloni, Michele, Villosio, Claudia
Format: Article
Language:English
Subjects:
Aging
Attrition
Bias
Cognitive ability
Demography
Geriatrics/Gerontology
Older workers
Original Investigation
Psychology
Public Health
Social Sciences
Training
Wages & salaries
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Summary:The financial deficits of many social security systems caused by ageing populations and stagnating economies are forcing workers to retire later from the labour market. An extended working life, combined with rapid technological progress in many sectors, is likely making older workers’ skills obtained in school obsolete. In this context, lifelong investment in training is widely recognised among the international research and policy community as a key element to increase or at least limit the decline in productivity of older workers. This paper investigates the relationship between training undertaken by European older workers and their wages, relying on the Survey of Health, Ageing and Retirement in Europe. There is no evidence of training wage premium for older workers residing in many European countries including Denmark, Sweden, Belgium, the Netherlands, and Switzerland. Very high premiums are instead found for Austria, Germany, Greece and Italy. It is, however, likely that these high premiums are overestimated due to training endogeneity and sample selection bias.
ISSN:1613-9372
1613-9380
DOI:10.1007/s10433-014-0327-7