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Working life and human capital investment

Gohl, Niklas, Haan, Peter, Kurz, Elisabeth and Weinhardt, Felix (2021) Working life and human capital investment. CEP Discussion Papers (1753). Centre for Economic Performance, LSE, London, UK.

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Abstract

This paper provides a novel test of a key prediction of human capital theory that educational investment decisions depend on the length of the pay-off period. We obtain causal estimates by leveraging a unique reform of the German public pension system that, across a sharp date-of-birth cutoff, increased the early retirement age by three years. Using RDD, DiD, and IV estimation strategies on census and householdpanel data, we show that this reform causally increased educational investment in the form of on-thejob training. In contrast, non-job related training before retirement was not affected. We explore heterogeneity and additional outcomes.

Item Type: Monograph (Discussion Paper)
Official URL: https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information: © 2021 The Authors
Divisions: LSE
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HN Social history and conditions. Social problems. Social reform
H Social Sciences > HC Economic History and Conditions
JEL classification: J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J26 - Retirement; Retirement Policies
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H21 - Efficiency; Optimal Taxation
Date Deposited: 22 Mar 2022 09:48
Last Modified: 22 Mar 2022 09:48
URI: http://eprints.lse.ac.uk/id/eprint/114422

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