Job-Related Training and Benefits for Individuals: A Review of Evidence and Explanations
OECD Education Working Papers No. 19
49 Pages Posted: 22 Feb 2009
Date Written: February 22, 2009
This paper reviews the literature on job-related training and the effects of these investments for different groups of individuals. The paper also elaborates on the theories, empirical explanations, and policy implications that can be drawn from these findings. Employer-provided training is by far the most important source of further education and training after an individual enters the labour market. A substantial portion of these human capital investments are financed by firms and it appears that the contribution by individuals are in most circumstances relatively modest. At the same time, substantial gains for individuals participating in training are documented in a large number of studies. The benefits are not only confined to wage returns as research has also shown that training leads to increased internal employability and job-security; and external labour market effects such as higher labour participation rates, lower unemployment, and shorter unemployment periods.
Keywords: Training, Returns to training, General and specific training, Benefits, Profitability, Human Capital
JEL Classification: I1, I2, J2,J7
Suggested Citation: Suggested Citation