The Causal Returns to Adult Training: Evidence on Cognitive, Socio-Emotional Skills and Paid Employment

This study aims to assess the causal link between adults who have received training and their cognitive, labour market, and socio-emotional outcomes using Programme for the International Assessment of Adult Competencies (PIAAC) data. The study addresses endogeneity and reverse causality through an instrumental variable approach, utilising the indicator of how far individuals' current age is from their retirement age (WorkHorizonRatio), which serves as an exogenous proxy for the remaining time in the workforce and thus the incentive to invest in training. Results indicate that participation in adult training has a positive influence on the likelihood of being employed in a paid role. Consequently, the findings emphasise the significance of adult education in improving employability and fostering active ageing; conversely, short-term cognitive effects appear to be limited. At the same time, socio-emotional improvements, such as increased openness, confidence, and emotional stability, suggest that adult learning can enhance adaptability, motivation, and psychological well-being among midand late-career workers, underscoring the importance of training as a key element of sustainable labour-market policies.