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On Government‐Subsidized Training Programs for Older Workers
Author(s) -
Dauth Christine,
Toomet Ott
Publication year - 2016
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/labr.12082
Subject(s) - subsidy , duration (music) , matching (statistics) , training (meteorology) , propensity score matching , german , government (linguistics) , demographic economics , business , gerontology , labour economics , medicine , economics , geography , philosophy , literature , archaeology , pathology , meteorology , market economy , art , linguistics
Abstract We analyze the impact of subsidized training programs for older workers. We apply a dynamic matching approach using German registry data. We find that subsidized training improves the probability to remain in paid employment by approximately 2.5 percentage points in the 2 years following treatment. The impact on benefit claims is small and largely insignificant. Effects are more pronounced for part‐time workers, for long‐duration program participants, and for workers older than 55 years. The results suggest that the main driver of these outcomes is postponed retirement, potentially because of improved job satisfaction.