Do workers benefit from on-the-job training? New evidence from matched employer-employee data

Abstract

This study examines the linkages between on-the-job training and employee benefits in terms of wages as well as non-monetary gains. Based on a uniquely matched employer-employee panel dataset for the 2011–2015 period in Vietnam, we find that on-the-job training has a positive but insignificant effect on wages. However, wage returns for on-the-job training are recorded for young workers only. Also, our results reveal that on-the-job training improves employee working conditions. These findings suggest that on-the-job training plays an important role in employee benefits, especially for young employees.