Working Paper

On-the-Job Training : Returns, Barriers to Provision, and Policy Implications

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collection.link.145
https://openknowledge.worldbank.org/handle/10986/7735
collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.145
World Development Report Background Papers
collection.name.5
Policy Research Working Papers
dc.contributor.author
Saraf, Priyam
dc.date.accessioned
2017-06-21T16:38:49Z
dc.date.available
2017-06-21T16:38:49Z
dc.date.issued
2017-06
dc.description.abstract
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.
en
dc.identifier.uri
http://hdl.handle.net/10986/27290
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 8090
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
JOB TRAINING
dc.subject
SKILLS
dc.subject
PRODUCTIVITY
dc.subject
WAGES
dc.subject
WORKFORCE DEVELOPMENT
dc.title
On-the-Job Training
en
dc.title.subtitle
Returns, Barriers to Provision, and Policy Implications
en
dc.type
Working Paper
en
okr.date.disclosure
2017-06-07
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/215081496860711954/On-the-job-training-returns-barriers-to-provision-and-policy-implications
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
090224b084cd210a_4_0
okr.identifier.internaldocumentum
27560340
okr.identifier.report
WPS8090
okr.imported
true
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/215081496860711954/pdf/WPS8090.pdf
en
okr.topic
Education :: Curriculum & Instruction
okr.topic
Education :: Education For All
okr.topic
Social Protections and Labor :: Labor Management and Relations
okr.topic
Social Protections and Labor :: Labor Policies
okr.topic
Social Protections and Labor :: Skills Development and Labor Force Training
okr.topic
Private Sector Development :: Private Sector Economics
okr.unit
Trade and Competitiveness Global Practice Group

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