Estimating the Returns to Firm-Sponsored On-the-Job and Classroom Training

This is the authors' abstract. We don't add key points for this paper.

I estimate returns to firm-sponsored classroom and on-the-job training in terms of value added per worker using longitudinal linked employee-employer Canadian data. I find that a large fraction of on-the-job training is not productivity enhancing and may be best thought of as part of the cost related to turnover. Also, I find that the subjects covered in classroom training are more productivity enhancing. In terms of human capital accumulation, this means that less attention should be paid to the choice between the two types of training and more focus should rest on the subjects covered in training.