On‐the‐job training: a skill match approach to the determinants of lifelong learning

Abstract A recurrent finding in on‐the‐job training research is the ‘training gap’ in formal training: the positive correlation between initial education and continuing training. This finding is here examined from the perspective of two important distinctions: (i) between employee skill supply and job skill demand and (ii) between formal and informal training. Less‐educated workers may hold jobs with low skill requirements demanding little further formal training because the use of high skills is irrelevant, jobs that moreover provide little informal training. Exploring these issues on representative Swedish survey data using the educational mismatch (overqualified, the rightly qualified and the underqualified) model, we find that job requirements are strongly correlated with the incidence of both formal and informal training. Rather than, as has previously been argued, employee training decisions being the cause of the gap, this suggests that employer decisions regarding how to structure jobs and whom to hire are the primary factors behind the training gap.