The Economic Pay-Offs To On-The-Job Training In Routine Service Work

This study examines the relationship between on-the-job training and job performance among 3,408 telephone operators in a large unionized telecommunications company. We utilize individual data on monthly training hours and job performance over a five-month period as provided by the company’s electronic monitoring system. Results indicate that the receipt of on-the-job training is associated with significantly higher productivity over time, when unobserved individual heterogeneity is taken into account. Moreover, workers with lower pre-training proficiency show greater improvements over time than those with higher pre-training proficiency. Finally, whether the training is provided by a supervisor or a peer also matters. Workers with lower proficiency achieve greater productivity gains through supervisor training, while workers with higher proficiency achieve greater productivity gains through peer training

Older Workers and On-the-Job Training in Canada: Evidence from the WES Data

This paper provides evidence of on-the-job training among older workers in Canada. It also examines the effect of age associated with on-the-job training. Statistics Canada’s Workplace and Employee Survey (WES) 2001 data, linking employee responses to workplace (i.e. employer) responses are used. Three quarters of workers are categorized as middle aged, with about one in ten being younger and one in five considered to be older. Only 32% of Canadian workers received on-the-job training in the year preceding this survey. When separating workers into the three age categories, 37%, 34%, and 24% of younger, middle-aged, and older workers, respectively, received on-the-job training in that year. Logistic regression analysis results showed that, controlling for workplace, job and individual factors, as compared to middle-aged workers, older workers are significantly less likely to receive on-the-job training. The lack of on-the-job training for older workers should be a concern for policy makers at a time when labour shortages are being predicted. Older workers are healthier than ever and the provision of on-the-job training should be encouraged to retain older workers in the labour market in Canada.older workers, on-the-job training, Workplace and Employment Survey

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

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.productivity, on-the-job training, classroom training, turnover, subjects of training

Task Organization, Human Capital and Wages in Moroccan Exporting Firms

We conduct a case study of the linkages of task organization, human capital accumulation and wages in Morocco, using matched worker-firm data for Electrical-mechanical and Textile-clothing industries. In order to integrate task organization into the interacting processes of workers’ training and remunerations, we use a recursive model, which is not rejected by our estimates: task organization influences on-the-job training that affects wages. Beyond sector and gender determinants, assignment of workers to tasks and on-the-job training is found to depend on former education and work experience in a broad sense. Meanwhile, participation in on-the-job training is stimulated by being assigned to a team, especially of textile sector and for well educated workers. Finally, task organization and on-the-job training are found to affect wages.Morocco, Wages, On-the-job training, Human capital, Task organization.

Underinvestment in on-the Job Training?

[Excerpt] A growing number of commentators are pointing to employer sponsored training (OJT)as a critical ingredient in a nation\u27s competitiveness. American employers appear to devote less time and resources to the training of entry level blue collar, clerical and service employees than employers in Germany and Japan (Limprecht and Hayes 1982, Mincer and Higuchi 1988, Koike 1984, Noll et al 1984, Wiederhold-Fritz 1985). In the United States, only 33 percent of workers with 1 to 5 years of tenure report having received skill improvement training from their current employer (Hollenbeck and Wilkie 1985). Analyzing 1982 NLS-Youth data, Parsons (1985) reports that only 34 to 40 percent of the young workers in clerical, operative, service and laborer jobs reported that it was very true that the skills [I am] learning would be valuable in getting a better job. The payoffs to getting jobs which offer training appear to be very high, however. In Parson\u27s study, having a high learning job rather than a no learning job in 1979 increased a male youth\u27s 1982 wage rate by 13.7 percent. While the 1980 job had no such effect, the 1981 job raised wages by 7.2 percent when it was a high learning job rather than a no learning job

Do Active Labor Market Policies help Unemployed Workers to find and keep Regular Jobs

This paper uses an administrative dataset to analyze to what extent active labor market policies in the Slovak Republic have been beneficial for unemployed workers. The focus is on two types of temporary subsidized jobs and on training. Short-term subsidized jobs seem to be the most efficient active labor market policy. Workers that are or have been on a short-term subsidized job have a higher job finding rate than other unemployed workers have and once they find a job they have a lower job separation rate than workers that have not been on a short-term subsidized job. Long-term subsidized jobs have a negative effect on the job finding rate and no effect on the job separation rate. The positive effect of training on the job finding rate of unemployed workers may have to do with reversed causality: some workers enter a training program only after they are promised a job. Training does not seem to affect the job separation rate.unemployment;active labor market policy;duration models

Training, Mobility, and Wages: Specific Versus General Human Capital

This paper considers training, mobility decisions and wages together to test for the specificity of human capital contained in continuing training courses. We empirically analyse the relationship between training, mobility and wages in two ways. First, we examine the correlation between training and mobility. In a second step, we consider wage effects of mobility taking training participation into account. First, we find that training participation is negatively correlated with the mobility decision and that training participation decreases the probability of individuals to change the job. Second, we find that wages are lower for job changers for the group of training participants, so wages decrease when trained individuals are mobile. Finally, training participation negatively affects the individuals's subjective valuation of the quality of their last job change. Taken together, these results suggest that there is some specific human capital, which is incorporated into training and lost when moving between jobs. --training,mobility,wages,search,job matching

Training Intensity and First Labor Market Outcomes of Apprenticeship Graduates

The apprenticeship system is the most important source of formal post-secondary training in Germany. Using German register data - the IAB Employment Sample - we find that apprentices staying with their training firm after graduation have longer first-job durations but not higher wages than apprentices leaving the training firm. Retention rates, first job durations, and post-apprenticeship wages are all increasing functions of training intensity. Some implications for the ongoing debate as to why firms are willing to invest in general training are discussed.Training, wages, job-duration

PENGARUH PELATIHAN TERHADAP KINERJA KARYAWAN MELALUI KEPUASAN KERJA SEBAGAI VARIABEL INTERVENING (Studi Pada Karyawan Rayz UMM Hotel)

This research aims to determine the effect of training on employee performance through job satisfaction as an intervening variable. This research was conducted at the Rayz UMM Hotel with contract employees in the F&B Product, F&B Service, housekeeping, HRD/Security and front office departments with a total of 46 respondents. This type of research uses quantitative methods. The sampling technique in this research uses saturated sampling where the entire population is sampled. Data collection for this research used a questionnaire. The data analysis technique used in this research is using a range of scales and Partial Last Square (PLS) 4.0. The research results show that training has no significant effect on employee performance, training has a positive and significant effect on job satisfaction, job satisfaction has a positive and significant effect on employee performance, and job satisfaction is able to mediate the relationship between training and employee performance