Publication Date

August 1994


[Excerpt] The theory of on-the-job training predicts that workers should pay the full costs of training that is useful at other firms. In fact, however, workers receiving training are not paid less than other similar workers and new hires who require extra training are paid only slightly less than new hires who require less than average amounts of training. Many employers offer workers the opportunity to learn general skills such as word processing and other computer applications programs on company time. Studies of the costs and benefits of apprenticeship training programs find that employers do not recoup their investment during the apprenticeship contract. Clearly, employers are sharing the costs of general training.


Suggested Citation
Bishop, J. (1994). The incidence of and payoff to employer training: A review of the literature with recommendations for policy (CAHRS Working Paper #94-17). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies.