This article deals with costs and benefits related to on-the-job training. For calculating costs and benefits of on-the-job training at the sector and macroeconomic levels, a model is developed. Model parameters are estimated using information from a survey of employers and employees in the Netherlands. Exogenous model variables are taken from the survey as well as from several official statistical sources.
The model is used for running a baseline scenario and several policy scenarios. The policy scenarios describe proposed policy measures for stimulating lifelong learning in the Netherlands. The model calculates detailed costs and benefits for players in the market for on-the-job training and the macroeconomic consequences.
It is shown that the differences in cost-effectiveness of policy measures can be large. Another important conclusion is that the results may differ strongly among employers, employees, and the government.