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

See all articles by Bo Hansson

Bo Hansson

Organization for Economic Co-Operation and Development (OECD) - Directorate for Education (EDU)

Date Written: February 22, 2009

Abstract

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

Hansson, Bo, Job-Related Training and Benefits for Individuals: A Review of Evidence and Explanations (February 22, 2009). OECD Education Working Papers No. 19, Available at SSRN: https://ssrn.com/abstract=1347622 or http://dx.doi.org/10.2139/ssrn.1347622

Bo Hansson (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Directorate for Education (EDU) ( email )

2, rue André-Pascal
Paris, 75775
France
+33 01 4524 1512 (Phone)
+33 01 4430 6177 (Fax)

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