Training and wages of older workers in Europe

Belloni, Michele; Villosio, Claudia

doi:10.1007/s10433-014-0327-7

Cited by 12 publications

(4 citation statements)

References 34 publications

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“…We find that participation in training to support change for workers aged 45 and more increases significantly the probability of showing frequently work practices to colleagues but only for workers who have no subordinate. This strong positive effect holds when narrowing (Stenberg et al, 2012;Boockmann et al, 2018), earnings (Belloni and Villosio, 2015) or on relative older workers' productivity (G€ obel and Zwick, 2013). We show that specific types of training to update skills after a technological or organizational change allows older workers to keep on interacting with their colleagues and transmitting their knowledge acquired through experience, which reduces the risk for firms of losing critical knowledge assets.…”

Section: Discussionmentioning

confidence: 76%

“…This study sheds a new light on the effectiveness of older workers’ training. Some contributions argue that older workers’ training is less effective as it has no significant effect on job duration (Stenberg et al ., 2012; Boockmann et al ., 2018), earnings (Belloni and Villosio, 2015) or on relative older workers’ productivity (Göbel and Zwick, 2013). We show that specific types of training to update skills after a technological or organizational change allows older workers to keep on interacting with their colleagues and transmitting their knowledge acquired through experience, which reduces the risk for firms of losing critical knowledge assets.…”

Section: Discussionmentioning

confidence: 99%

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Knowledge transmission in the second part of careers: does formal training matter?

Messe

Greenan

2023

IJM

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PurposeThis paper examines to what extent formal training targeted to workers aged 45 and over could enhance their knowledge transmission activities specifically in changing work environments. This is a key issue for human resources practitioners. Allowing older workers to keep on interacting with their colleagues and transmitting their knowledge acquired through experience reduces the risk for firms of losing critical knowledge assets.Design/methodology/approachThe authors use French-matched employer–employee data to estimate the effect of participation in training sessions intended to support change on the probability for workers aged 45–59 of frequently showing work practices to their co-workers. To account for selection bias in training, the authors reduce the group of untrained workers to those who wanted to attend a training session but had to cancel their participation for exogenous reasons. Leuven and Oosterbeek (2008) show that this is a valid approximation of a random assignment to training.FindingsTraining with the intention to support change for workers aged 45 and more significantly increases knowledge transmission for training participants. This effect is not strictly related to a supervising role as it is significant for workers without subordinates; it holds when the authors address the selection bias in training by narrowing down the comparison group. When training comes as a response to mitigate the potential negative effects of technological or organizational changes in the work environment, it helps workers aged 45–59 maintain their contribution to the knowledge base of the production.Research limitations/implicationsOur findings suggest that two main aspects have to be borne in mind when assessing the effectiveness of training for older workers. First, the reasons for training must be carefully considered, especially if it occurs in response to technological or organizational change in the workplace. Second, the continuation of interactions between older workers and their co-workers must be factored. If the public debate acknowledges that employee learning and development is critical in times of structural change and crisis, the outcomes of knowledge transmission within workplaces in terms of job satisfaction, turnover intentions, productivity or innovation, which the authors do not cover in this paper, deserve further investigations. In particular, the authors believe that studying how the training that supports technological and organizational change influences the relationship between age diversity and firm productivity is a promising avenue for future research.Practical implicationsThe implication of this article for human resource managers is that there may be a substantial cost to not updating the skills of older workers after technological or organizational change. Indeed, it is likely that a large proportion of jobs will only be partially automated, which implies that while some tasks will disappear, rendering the corresponding skills obsolete, others will persist and the skills associated with them will remain useful to organizations. If older workers are excluded from their work collectives after these changes, because their skills have not been updated through training, the knowledge from their accumulated experience that remains valuable will be irrevocably lost when they retire.Originality/valueThis study sheds a new light on the effectiveness of older workers’ training. Some contributions argue that training for older workers is not very effective because it has no significant effect on employment duration, earnings or relative productivity. The authors show that specific types of training to update skills after a technological or organizational change allow older workers to keep interacting with their co-workers and pass on their knowledge gained through experience, thereby reducing the risk for firms of losing critical knowledge assets.

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Section: Discussionmentioning

confidence: 76%

Section: Discussionmentioning

confidence: 99%

Knowledge transmission in the second part of careers: does formal training matter?

Messe

Greenan

2023

IJM

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“…First, as the pace of technological innovation accelerates, it is essential for companies to supplement the skills of their human capital (Bapna et al 2013). Second, in aging developed countries, lifetime investments in training are important in increasing or at least limiting the decline in the productivity of older workers (Belloni and Villosio 2015). Third, millennials, who are expected to account for 75 percent of the workforce in 2030, value rewarding work in a meaningful connection with their employers rather than monetary compensation (Mankins, Garton, and Schwartz 2021).…”

Section: Significance Of Training In Human Resource Managementmentioning

confidence: 99%

Which Is More Effective for Job Satisfaction, Expert Knowledge or Career Status Through Training? Differences between Large Enterprises and SMEs

Kato

Yamamoto

Miyaji

et al. 2022

Journal of Applied Social Science

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In this study, we clarified the effect of training by enterprise size for the training service (TOSA Marugoto Business Academy Project [Tosa MBA]) provided by Kochi Prefecture in Japan by applying structural equation modeling to online survey data. In large enterprises, expert knowledge that can be used at work had a positive effect on job satisfaction rather than career status such as annual income and job title. This may have been the case as while promotion involves higher wages and greater privileges, in large enterprises, the extent of responsibility and working hours increase even more. Conversely, in small and medium-sized enterprises (SMEs), career status has a more positive effect on job satisfaction than does expert knowledge. For SMEs with a simple organizational structure, job position has a greater influence on work attitudes. The results present meaningful suggestions to enhance the design of local government training services.

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“…In this paper we investigate the interaction between three factors that influence an individual's socio-demographic status-namely, age, gender and migration background-in order to identify whether these statuses contribute to negative outcomes in the labour market-in our case in relation to wages. Wage differences are the result of a variety of factors, of which discrimination may provide one explanation, but such differences may also be attributable to variances in productivity among older workers (Myck 2015;Belloni and Villosio 2015). The paper also addresses how individuals accumulate certain advantages and disadvantages over their individual life courses as a function of the socio-demographic characteristics attributable to them.…”

Section: Introductionmentioning

confidence: 99%

Gender, age and migration: an intersectional approach to inequalities in the labour market

Stypińska

Gordo

2017

Eur J Ageing

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This paper analyses the interference of three socio-demographic characteristics: gender, age and migration status on the labour market outcomes from the perspective of intersectionality theory. Concretely, we investigate whether gender and migration differences in hourly wages are observable at younger ages and whether these differences increase with age. Further, we analyse whether gender and migration interact in such a way that women with migration background suffer lower wage growth in relation to their counterparts. Our analyses draw on data from the Socio-Economic Panel (German SOEP from 1991 to 2014), distinguishing between populations with and without a migration background. Random effects hourly wage regressions controlling for selection bias using Heckman procedure have been estimated in our analysis. The results show that there are large gender differences in hourly wage at younger ages, and these differences are maintained over the life course. Regarding migration status, no significant disadvantages in wages are observable at early stages. However, disadvantages of men and women with migration background increase with age, resulting in lower earnings for older workers with migration background. When we analyse the interaction between migration and gender, we observe no effect either at younger ages or over the entire lifespan, indicating that the gender disadvantage is no more pronounced for women with migration background than for women without such a background (and vice versa).

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Training and wages of older workers in Europe

Cited by 12 publications

References 34 publications

Knowledge transmission in the second part of careers: does formal training matter?

Knowledge transmission in the second part of careers: does formal training matter?

Which Is More Effective for Job Satisfaction, Expert Knowledge or Career Status Through Training? Differences between Large Enterprises and SMEs

Gender, age and migration: an intersectional approach to inequalities in the labour market

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