Do workers pay for on-the-job training?

We examine the relationships among on-the-job training, sta,ting wages, wag e growth, and productivity growth. Our models suggest that training lowers starting wages, but the estimated magnitudes are small. When firms are aske d directly, we find that they pay higher starting wages to workers requirin g less training than is typical, but do not pay er starting wages to worker s who require more training than is typical. In contrast to the results Sol wage growth, we find a large, robust impact of training on productivity gr owth, suggesting that firms pay most of the cost and reap most of the retur ns to training.