On-the-Job Training : Returns, Barriers to Provision, and Policy Implications
Firms that provide on-the-job training do so when it is critical to their productivity—and when productivity is critical to their survival. This paper begins by confirming a significant and positive return from on-the-job training on wages and prod...
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| Format: | Working Paper |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/215081496860711954/On-the-job-training-returns-barriers-to-provision-and-policy-implications http://hdl.handle.net/10986/27290 |
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okr-10986-272902021-06-14T10:12:24Z On-the-Job Training : Returns, Barriers to Provision, and Policy Implications Saraf, Priyam JOB TRAINING SKILLS PRODUCTIVITY WAGES WORKFORCE DEVELOPMENT Firms that provide on-the-job training do so when it is critical to their productivity—and when productivity is critical to their survival. This paper begins by confirming a significant and positive return from on-the-job training on wages and productivity, as well as the presence of positive externalities from on-the-job training, while discussing the methodological considerations at play. The paper then reviews and validates the presence of market failures such as information asymmetries within the firm as a result of low-quality management practices that dampen firm demand for on-the-job training. Lack of competition in the firm's external environment appears to undermine adoption of on-the-job training and other complementary productivity-enhancing activities within the firm. The literature suggests that for most firms, a comprehensive policy approach that resolves external constraints to becoming more productive is likely to have a positive impact on the provision of on-the-job training and adoption of complementary policies. More direct forms of firm-level support to improve management capabilities could also alleviate under-provision of on-the-job training. Where societies have improved welfare as a goal, public policy measures would be needed to complement on-the-job training for some specific groups of workers (older, less educated, women). In essence, the paper highlights the importance of demand-side constraints for firms, rather than supply-side constraints, for the provision of on-the-job training. 2017-06-21T16:38:49Z 2017-06-21T16:38:49Z 2017-06 Working Paper http://documents.worldbank.org/curated/en/215081496860711954/On-the-job-training-returns-barriers-to-provision-and-policy-implications http://hdl.handle.net/10986/27290 English en_US Policy Research Working Paper;No. 8090 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
JOB TRAINING SKILLS PRODUCTIVITY WAGES WORKFORCE DEVELOPMENT |
| spellingShingle |
JOB TRAINING SKILLS PRODUCTIVITY WAGES WORKFORCE DEVELOPMENT Saraf, Priyam On-the-Job Training : Returns, Barriers to Provision, and Policy Implications |
| relation |
Policy Research Working Paper;No. 8090 |
| description |
Firms that provide on-the-job training
do so when it is critical to their productivity—and when
productivity is critical to their survival. This paper
begins by confirming a significant and positive return from
on-the-job training on wages and productivity, as well as
the presence of positive externalities from on-the-job
training, while discussing the methodological considerations
at play. The paper then reviews and validates the presence
of market failures such as information asymmetries within
the firm as a result of low-quality management practices
that dampen firm demand for on-the-job training. Lack of
competition in the firm's external environment appears
to undermine adoption of on-the-job training and other
complementary productivity-enhancing activities within the
firm. The literature suggests that for most firms, a
comprehensive policy approach that resolves external
constraints to becoming more productive is likely to have a
positive impact on the provision of on-the-job training and
adoption of complementary policies. More direct forms of
firm-level support to improve management capabilities could
also alleviate under-provision of on-the-job training. Where
societies have improved welfare as a goal, public policy
measures would be needed to complement on-the-job training
for some specific groups of workers (older, less educated,
women). In essence, the paper highlights the importance of
demand-side constraints for firms, rather than supply-side
constraints, for the provision of on-the-job training. |
| format |
Working Paper |
| author |
Saraf, Priyam |
| author_facet |
Saraf, Priyam |
| author_sort |
Saraf, Priyam |
| title |
On-the-Job Training : Returns, Barriers to Provision, and Policy Implications |
| title_short |
On-the-Job Training : Returns, Barriers to Provision, and Policy Implications |
| title_full |
On-the-Job Training : Returns, Barriers to Provision, and Policy Implications |
| title_fullStr |
On-the-Job Training : Returns, Barriers to Provision, and Policy Implications |
| title_full_unstemmed |
On-the-Job Training : Returns, Barriers to Provision, and Policy Implications |
| title_sort |
on-the-job training : returns, barriers to provision, and policy implications |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/215081496860711954/On-the-job-training-returns-barriers-to-provision-and-policy-implications http://hdl.handle.net/10986/27290 |
| _version_ |
1764464120798642176 |