Training, a tool for retaining? A quantitative study on the effect of work-related training on the desired retirement age in Western Europe

Abstract

A tremendous amount of effort is put into education and training due to societal ageing. While the focus of policy is mainly on the effect of training on the ability to continue working, it is equally important to investigate the effect of this on the willingness to continue working. In addition, little research has been done on the direct effect of training on retirement age. This study focused on identifying the effect of training, offered by employers, on the desired retirement age of employees in Western Europe (concentrated on the Netherlands, Belgium, Germany, Denmark and the UK). The theoretical framework aimed to identify the underlying mechanisms of the effect of training on the willingness to continue working. Amongst other things, this framework proposed that training leads to up-to-date skills that would result in a better job fit, after which employees would choose to stay in work longer, thus hypothesising positive effects on the desired retirement age. Using data from the EWCS6, logistic regression analyses and linear regression analyses were performed. The total sample for the logistic regression analyses was 5,110 respondents and the total sample for the linear regression analyses was 4,134 respondents. The desired retirement age was examined in two ways in this study: according to working beyond the state pension age (logistic) and according to the preferred exit age (linear). The results showed that employees who have received training are less likely to want to continue working beyond the state pension age. In addition, it became apparent that the differences in preferred exit age after training only applied to senior employees. Based on the findings of the study, it was advised, amongst other things, to critically review training as a factor for motivating people to work longer.