TRAINING, WAGE GROWTH, AND JOB-PERFORMANCE - EVIDENCE FROM A COMPANY DATABASE

A unique dataset collected from the personnel records of a large compa ny is used to study the relationship between on-the-job training and w orker productivity. The analysis shows how information contained in a company database is useful for eliminating heterogeneity bias in the e stimation of training's impact on wages and job performance. Even when selection bias in assignment to training programs is eliminated, trai ning is found to have a positive and significant effect on both wage g rowth and the change in job performance scores, thereby confirming the robustness of the relationship between training and productivity.