Private Sector Training

Who Gets It and What Are Its Effects?

by Lee A. Lillard, Hong W. Tan

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This report considers several issues regarding recipients of post-school job training, the extent of such training and the reasons for it, and how it affects subsequent earnings and employment. It draws on measures of reported training from the Current Population Survey, three cohorts from the National Longitudinal Surveys, and the Employment Opportunities Pilot Projects Survey. Its principal findings are (1) the probability of training rises with schooling and the industry rate of technical change; (2) nonwhites and women appear to receive less training than white males; (3) rapid technical change is associated with increased training from company sources, and with managerial, professional and technical types of training; and (4) these kinds of training have the largest effects on increasing earnings and reducing the likelihood of future unemployment.

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