HOW WELL DO WE MEASURE TRAINING

This article compares various measures of on-the-job training, from a new source that matches establishments and workers, allowing us to com pare the responses of employers and employees to identical training qu estions. Establishments report 25% more hours of training than do work ers, although workers and establishments report similar incidence rate s of training. Both establishment and worker measures agree that there is much more informal training than formal training. Further, informa l training is measured about as accurately as formal training. Finally , we show that measurement error reduces substantially the observed ef fect of training, in particular the effect of training on productivity growth.