Training Background and Early Retirement

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Abstract

Training Background and Early RetirementSeveral studies show that employees with firm-specific skills are more likely to be covered byemployer-sponsored pension schemes than workers with general skills. Therefore it can beexpected that workers with firm-specific skills retire earlier. This paper tests this predictionusing US data from the National Longitudinal Survey of Older Men. We find that workers whoparticipated in firm-specific training in their early careers retire earlier than workers with ageneral training background. This indicates that shared investments in firm-specific trainingare embedded in implicit contracts that induce early retirement. The results remain robustwhen controlling for technological change and work commitment.
Original languageEnglish
Place of PublicationBonn
PublisherIZA
Number of pages32
Publication statusPublished - 2008

Publication series

SeriesIZA Discussion Paper Series
Number3504
ISSN2365-9793

Keywords

  • retirement, training, deferred compensation

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