Risk preferences and training investments

We analyze workers’ risk preferences and training investments. Our conceptual framework differentiates between the investment insurance mechanisms underpinning decisions. Investment leads risk-averse workers to train less; they undertake more if it insures them against future losses. use German Socio-Economic Panel (SOEP) demonstrate that affinity is associated with training, implying that, on average, risks dominate benefits of training. Crucially, this relationship evident only for general training; there no attitudes specific Thus, consistent our framework, matter when skills are transferable – have a vested interest in outcomes than not. Finally, we provide evidence concentrated among uncertain employment relationships or limited access public schemes.