The authors develop a model of optimal employer search strategy when information about match quality is endogenous. The model is tested using four data sets, two of which have not previously been used. As theory predicts, the authors find that, when filling positions requiring more training,...

This article compares various measures of on-the-job training, from a new source that matches establishments and workers, allowing the authors to compare the responses of employers and employees to identical training questions. Establishments report 25 percent more hours of training than do...

An employer must choose a procedure for screening job applicants, a rate of hire, a training program for new employees, a criterion for the retention of new employees after observing their on-the-job performance, a compensati on package, and a rate of capital investment so as to minimize...

Conventional analysis predicts that workers pay part of their on-the-job training costs by accepting a lower starting wage and subsequently realize a return to this investment in the form of greater wage growth. Missing from the conventional treatment of on-the-job training is a discussion of...