On-the-Job Training

(The first chapter of this book is available in PDF format.)

Firms in the U.S. invest billions of dollars annually in workforce training. Growing evidence of the effects of this training on worker productivity, wages, hiring and turnover has led researchers to gradually incorporate the role of training into their analyses. On-the-Job Training, by economists Barron, Berger and Black, advances this line of research by offering new evidence on the amount of training provided to workers during the first three months on the job, and the characteristics of those workers who received that training. The authors also present:

• new evidence on the effects of on-the-job training (OJT) -- including data that refute a key prediction inherent in current OJT theory
• analysis of a unique "matched" data set that reveals errors associated with the measurement of training and other variables important to researchers in labor economics
• recommendations for future government training policy.

Rationale for their failure to find a strong, inverse relationship between training and the starting wage is shown to be rooted in the characteristics of the employees hired and the nature of the position they were hired to fill.

Barron, Berger and Black also present the results of a "matched" survey that allows them to compare the responses of employers who provided training with the responses of newly-hired workers who received that training. This exercise reveals discrepancies in the amount of training reported. In addition, the authors offer several findings pertinent to future discussions on how to increase the human capital of lower-income workers, and advice to policy makers who may wish to encourage more OJT in the private sector.

"As expected given their track record in the training literature, Barron, Berger, and Black make a substantial contribution by pulling together in one place answers to important questions regarding access to training opportunities, the duration of OJT across workers who differ by job and personal characteristics, and how accurately we are able to measure training. Their careful examination of the strengths and weaknesses of the data sources used is especially commendable." Industrial and Labor Relations Review

"Barron, Berger and Black provide a masterful survey of what is known about on-the-job training, adding fresh insights and empirical results to broaden knowledge of the subject." Choice

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