The Measurement of On-the-Job Training 1

Abstract

The availability of direct measurement of job training provides an opportunity to test directly theories dealing with the relationship among training, schooling, wage growth, and labor mobility. Since most training is informal, obtaining a good estimate is complicated but crucial. This paper analyzes and compares the training information provided by two data sets: The Panel Study of Income Dynamics and the DOT. The analysis shows that the PSID reports only partially training obtained via vocational education and experience in other jobs. The average reported training in the DOT is, therefore, higher, but the correlation between the two measures is high.