Working Paper: CEPR ID: DP8320
Authors: Matteo Picchio; Jan C. van Ours
Abstract: This paper investigates whether on-the-job training has an effect on the employability of workers. Using data from the Netherlands we disentangle the true effect of training incidence from the spurious one determined by unobserved individual heterogeneity. We also take into account that there might be feedback from shocks in the employment status to future propensity of receiving firm-provided training. We find that firm-provided training significantly increases future employment prospects. This finding is robust to a number of robustness checks. It also holds for older workers, suggesting that firm-provided training may be an important instrument to retain older workers at work.
Keywords: Employment; Human Capital; Older Workers; Training
JEL Codes: C33; C35; J21; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| firm-provided training (M53) | future employability (J68) |
| training participation (M53) | employment status (J63) |
| employment status (J63) | future training participation (M53) |
| training (M53) | reduction in non-employment risk (J32) |
| training (M53) | likelihood of remaining employed for older workers (J26) |