On-the-Job Training in Greece: A Brief Overview

Abstract

On the job training (OJT) benefits not only the firm and the employees directly involved but society as a whole. A number of countries record a “deficit” of OJT. The deficit appears pronounced in the Greek economy despite the adoption of a number of policy incentives to encourage training. OJT incidence varies significantly by company size and economic activity. The small size of Greek companies and the composition of economic activity (large share of activity in retail trade and construction) explain part but not all of the difference in OJT incidence between Greece and the U-27. Most companies that provide training assess OJT positively and systematically implement such programs. The analysis finds that OJT leads to increased productivity and innovation. Despite these findings, most Greek companies do not seem convinced of the usefulness of OJT. They believe that their staff already possess the skills required for their current activity.

Keywords: training, productivity, innovation

JEL Classification: J24,O31