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Is There a Role for Public Support of Incumbent Worker On-the-Job Training?

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Abstract

States have begun to use training subsidies as a policy tool for employment retention and business competitiveness. This paper summarizes a survey of states concerning their investments in incumbent worker training. Altogether, states are investing about $550 to $800 million, which is perhaps one percent or less of total private sector training costs. The paper further discusses a study conducted for one state in which we found significant fiscal returns implying that underinvestment of public funds for incumbent worker training may be occurring. In this state, primary sector jobs were created or retained at a public cost of less than $9,000 per job; a cost that rivals or bests most economic development initiatives.

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  • Kevin Hollenbeck, 2008. "Is There a Role for Public Support of Incumbent Worker On-the-Job Training?," Upjohn Working Papers and Journal Articles 08-138, W.E. Upjohn Institute for Employment Research.
  • Handle: RePEc:upj:weupjo:08-138
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    References listed on IDEAS

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    1. Timothy J. Bartik, "undated". "Who Benefits from Local Job Growth: Migrants or Original Residents?," Upjohn Working Papers and Journal Articles tjb1993rs, W.E. Upjohn Institute for Employment Research.
    2. Mark A. Loewenstein & James R. Spletzer, 1999. "General and Specific Training: Evidence and Implications," Journal of Human Resources, University of Wisconsin Press, vol. 34(4), pages 710-733.
    3. John M. Barron & Mark C. Berger & Dan A. Black, 1997. "On-the-Job Training," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ojt, November.
    4. Richard W. Moore & Daniel R. Blake & G. Michael Phillips & Daniel McConaughy, 2003. "Training that Works: Lessons from California's Employment Training Panel Program," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ttw, November.
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    Cited by:

    1. Holzer, Harry J., 2012. "Raising Job Quality and Worker Skills in the US: Creating More Effective Education and Workforce Development Systems in States," IZA Policy Papers 42, Institute for the Study of Labor (IZA).
    2. Timothy J. Bartik & George A. Erickcek, 2012. "Simulating the Effects of Michigan's MEGA Tax Credit Program on Job Creation and Fiscal Benefits," Upjohn Working Papers and Journal Articles 12-185, W.E. Upjohn Institute for Employment Research.
    3. Singer, Christine & Toomet, Ott-Siim, 2013. "On government-subsidized training programs for older workers," IAB Discussion Paper 201321, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Timothy J. Bartik, 2009. "The Revitalization of Older Industrial Cities: A Review Essay of "Retooling for Growth"," Growth and Change, Wiley Blackwell, vol. 40(1), pages 1-29.
    5. Timothy J. Bartik & George Erickcek, 2014. "Simulating the Effects of the Tax Credit Program of the Michigan Economic Growth Authority on Job Creation and Fiscal Benefits," Economic Development Quarterly, , vol. 28(4), pages 314-327, November.
    6. Timothy J. Bartik, 2012. "The Future of State and Local Economic Development Policy: What Research Is Needed," Growth and Change, Wiley Blackwell, vol. 43(4), pages 545-562, December.
    7. Jeffrey Thompson, 2010. "Prioritizing Approaches to Economic Development in New England: Skills, Infrastructure, and Tax Incentives," Published Studies priorities_september7_per, Political Economy Research Institute, University of Massachusetts at Amherst.
    8. Harry Holzer, 2012. "Good workers for good jobs: improving education and workforce systems in the US," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-19, December.
    9. Timothy J. Bartik & Kevin Hollenbeck, 2012. "An Analysis of the Employment Effects of the Washington High Technology Business and Occupation (B&O) Tax Credit," Upjohn Working Papers and Journal Articles 12-187, W.E. Upjohn Institute for Employment Research.

    More about this item

    Keywords

    incumbant; worker; on-the-job training; ojt; hollenbeck;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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