Academic Literature

Informal On-the-job Training – Skill development appears to be larger than that of participation to training programmes

Due to lack of data on skill development, there is hardly any empirical literature on the contribution of different forms of izahuman capital investments to workers’ skill development.

In this paper, we provide more insights into the relevance of the assumption that the productivity of training is driven by the improvement of workers’ skills. We analyse the extent to which training and informal learning on the job are related to employee skill development and consider the heterogeneity of this relationship with respect to workers’ skill mismatch at job entry.

Using data from the 2014 European Skills Survey, we find – as assumed by human capital theory – that employees who participated in training or informal learning show greater improvement of their skills than those who did not. The contribution of informal learning to employee skill development appears to be larger than that of training participation. Nevertheless, both forms of learning are shown to be complementary. This complementarity between training and informal learning is related to a significant additional improvement of workers’ skills. The skill development of workers who were initially underskilled for their job seems to benefit the most from both training and informal learning, whereas the skill development of those who were initially overskilled benefits the least. Work-related learning investments in the latter group seem to be more functional in offsetting skill depreciation than in fostering skill accumulation.

Chosen excerpts by Job Market Monitor. Read the whole story at IZA – Institute for the Study of Labor

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