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

Posted: 13 Nov 2010

See all articles by Benoit Dostie

Benoit Dostie

HEC Montreal - Institute of Applied Economics; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: October 1, 2010

Abstract

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.

Keywords: Productivity, On-the-Job Training, Classroom Training, Turnover, Linked Employer-Employee Data

Suggested Citation

Dostie, Benoit, Estimating the Returns to Firm-Sponsored On-the-Job and Classroom Training (October 1, 2010). CIRANO - Scientific Publications 2010s-44, Available at SSRN: https://ssrn.com/abstract=1708114 or http://dx.doi.org/10.2139/ssrn.1708114

Benoit Dostie (Contact Author)

HEC Montreal - Institute of Applied Economics ( email )

3000, ch. de la Côte-Ste-Catherine
Montréal, Quebec H3T 2A7
Canada
514-340-6453 (Phone)
514-340-6469 (Fax)

HOME PAGE: http://www.hec.ca/profs/benoit.dostie.html

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
60
Abstract Views
435
rank
361,725
PlumX Metrics