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

Benoit Dostie

No 5258, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper, we estimate returns to classroom and on-the-job firm-sponsored training in terms of value-added per worker using longitudinal linked employee-employer Canadian data from 1999 to 2006. We estimate a standard production function controlling for endogenous training decisions because of perceived net benefits and time-varying market conditions using dynamic panel GMM methods. We find that employees who undertook classroom training are 11 percent more productive than otherwise similar employees. We show that returns to on-the-job training are on average lower (3.4 percent). We provide evidence that these lower returns are due to on-the-job training being more closely related to turnover and more geared toward subjects that are less productivity-enhancing.

Keywords: subjects of training; productivity; on-the-job training; classroom training; turnover (search for similar items in EconPapers)
JEL-codes: C23 D24 J31 J63 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2010-10
New Economics Papers: this item is included in nep-bec and nep-lab
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Citations: View citations in EconPapers (3)

Published - published in: Journal of Human Capital, 2013, 7 (2), 161-189

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https://docs.iza.org/dp5258.pdf (application/pdf)

Related works:
Journal Article: Estimating the Returns to Firm-Sponsored On-the-Job and Classroom Training (2013)
Working Paper: Estimating the Returns to Firm-Sponsored on-the-Job and Classroom Training (2010)
Working Paper: Estimating the returns to firm-sponsored on-the-job and classroom training (2010)
Working Paper: Estimating the Returns to Firm-Sponsored on-the-Job and Classroom Training (2010)
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