AIAS Lunch Seminar 9 oktober - Michele Belloni (University Ca’ Foscari of Venice)

‘The effect of training on older workers’ wage: evidence from Europe’

Michele Belloni

Day: Thursday 9 October 2014
Time: 12.15 – 13.15 hrs.
Location: AIAS, 2nd floor, G building, Nieuwe Prinsengracht 130, Amsterdam
Registration: Please send an email, preferably before Wednesday 8 October, 12.00 hrs, to register.
A sandwich will then be provided.

Abstract

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 recognized 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.
Having undertaken training activities in the recent past is associated with 6.3% higher wages. This premium is sizeable and is similar to that of attaining an upper or post-secondary degree instead of a primary or lower-secondary degree. Training wage premia are highly heterogeneous across countries: they are highest in Austria, Germany, Greece, and Italy and are about half that in France and Spain. No premium is found for Denmark, Sweden, Belgium, the Netherlands, and Switzerland. Training premia of the first group of countries can be overestimated due to training endogeneity and sample selection bias.

Keywords: Older workers, Training, Wages, Cognitive abilities, Sample selection bias, Attrition
JEL Codes: J14, J24, J31

Bio

Michele Belloni, Ph.D., is post-doctoral researcher at the Department of Economics, University Ca’ Foscari of Venice. He is a fellow of the Network for Studies on Pensions, Aging and Retirement (NETSPAR, Tilburg University), the Center for Research on Pension and Welfare Policies (CeRP, Collegio Carlo Alberto) and a member of the Survey of Health, Ageing and Retirement in Europe (SHARE) working group.
His research interests include The Economics of Ageing, Demography, Health Economics, and Labor Economics. He has published his works on international peer-reviewed Journals such as Labour Economics, Oxford Bulletin of Economics and Statistics, and The Geneve Papers on Risk and Insurance. He taught at the University of Turin, the Maastricht Graduate School of Governance and Social Security Financing at the International Training Center of the ILO. He participated in various research projects financed by the European Commission, NETSPAR, and the Italian Ministry of Labor.

The next lunch seminar 16 October

The Labor Movement and Precarious Worker Organizing in the USA
Ruth Milkman
Academic Director, Labor Studies Masters and Certificate Programs
CUNY Graduate Center of New York


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