The effects of pension rights and retirement age on training participation: Evidence from a natural experiment

Abstract

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Retaining through training even for older workers

“…To receive the same pension benefits the younger cohort has to postpone retirement for about 13 months. Montizaan et al (2010) show that this change in future pension benefits had an effect on the expected retirement age and, through this, a positive effect on workers' training participation. We show that this is rational to do since training leads to retaining of jobs.…”

Training Access, Reciprocity and Expected Retirement Age

“…These studies show that expectations are strongly related to retirement decisions, but also provide mixed evidence on the ability of workers to assess financial decisions (Duflo and Saez, 2003;Benitez-Silva and Dwyer, 2005;Chan and Stevens, 2008;Liebman and Luttmer, 2011;Van Rooij et al, 2011. Montizaan et al (2010), however, provide evidence that Dutch public sector employees are well informed about their pension rights and the implications of the changes in the pension system in the past decades for their pension benefits and timing of retirement. We also performed control analyses in which we used the underlying items of our training indicator and find that our main results hold for both items.…”

“…These results therefore suggest that positively reciprocal employees expect to retire later only when their employer is also more likely to be willing to keep them to a later age. 33 These data are part of a panel database used in other studies to measure the effects of a major pension reform in the Dutch public sector that occurred in 2006 (e.g., Montizaan et al, 2010;and Montizaan and Vendrik, 2014). We do not have administrative information on actual retirement behavior for other birth cohorts.…”

Further Training for Older Workers: A Solution for an Ageing Labour Force?

“…Findings from recent years indicate a positive development in the participation of older workers in training (Shields, 1998;Riphahn & Trübswetter, 2006;Montizaan et al 2010;. Shields (1998), for example, investigated the changes in the determinants of training over time (between 1984 and 1994) using the UK's Labour Force Surveys (LFS).…”

“…In other words, the agetraining profile flattered with greater growth in the proportions of older workers receiving training than of younger workers. Furthermore, a study conducted by Montizaan et al (2010) examined the effect of changes in pension benefits on the participation of workers in training, using matched survey data and administrative data in the Netherlands for male workers working in the public sector. They compared workers who are entitled to the old generous pension schemes (born before 1 January 1950) with workers who born after the break and are With respect to Germany, findings from recent years indicate an increase in the incidence of training of older workers which is parallel to the increase in the duration of employment (Riphahn & Trübswetter, 2006;.…”