Training in the Great Recession – Evidence from an Individual Perspective

Daniel Dietz and Thomas Zwick
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  • Julius-Maximilians-Universität, Würzburg, Sanderring 2, Würzburg, Bayern, 97070, Germany
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This paper analyses the effect of the economic crisis in the years 2008 and 2009 on individual training activities of different employee groups within establishments. We use a unique German linked employer–employee panel data set with detailed information on individual training history (WeLL-ADIAB). The so-called Great Recession can be seen as an exogenous, unexpected, and time-limited shock. Although our results cannot be interpreted in a strictly causal manner, our Diff-in-Diff analyses suggest a direct negative effect of the crisis on individual training activities in 2009 and 2010. The negative effect therefore sets in with a time lag and lasts until after the recession. Furthermore, the recession has a stronger effect for employees in unskilled jobs than for employees in skilled jobs.

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The Journal of Economics and Statistics is a scientific journal published in Germany since 1863. The Journal publishes papers in all fields of economics and applied statistics. A specific focus is on papers combining theory with empirical analyses.