Determinants of Further Training: Evidence for Germany

Abstract

We explore the relevance and development of further training in private sector firms using the German Socio-Economic Panel, which is a representative sample of German residents. We focus on formal training and explore possible individual and job-based determinants of its incidence. We also show changes over time during a 20-year observation period from 1989 to 2008. Most hypotheses are supported by the empirical evidence. Job status and firm size are the most relevant characteristics for training participation. Furthermore, our analyses reveal a general trend of rising training rates from 1989 to 2008, indicating an increased importance in the German labor market.