On-the-job Training and Labor Market Competition

Abigail Adams, Thomas Le Barbanchon and Alberto Marcato

No 22075, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: In this paper, we provide new stylized facts on U.S. firm provision of on-the-job training. We take a supervised machine-learning approach to measure training from job vacancy text. Around 26% of job posts offer training. Using an IV strategy, we find that competition reduces training offers. Decreasing labor concentration by one standard deviation decreases training by 5 to 10%. This suggests that direct positive competition effects through workers’ benefits are outweighed by negative effects on firms’ investment in workers human capital due to higher turnover. Indeed, industries where competition increases turnover more have also larger training reduction due to competition.

Keywords: On-the-job training; Monopsony; Job vacancies (search for similar items in EconPapers)
JEL-codes: J24 J42 J63 M53 (search for similar items in EconPapers)
Date: 2026-10
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