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Underinvestment In Employer Training: Is A Mandate To Spend On Training The Answer?, John H. Bishop
Underinvestment In Employer Training: Is A Mandate To Spend On Training The Answer?, John H. Bishop
John H Bishop
American employers and their workers under invest in employer training. Under investment occurs because training generates externalities, because the tax system is biased against training investments, and because most workers are unable to finance general training because they lack access to loans to finance consumption during periods of heavy investment in training. School based occupational training ameliorates the under investment problem somewhat but it is not a complete answer to the problem. The French approach of requiring firms to spend at least 1.4 percent of their wage bill on continuing training of employees (if they are to avoid paying a …
Are National Exit Examinations Important For Educational Efficiency?, John H. Bishop
Are National Exit Examinations Important For Educational Efficiency?, John H. Bishop
John H Bishop
“This paper analyses effects of national or provincial exit examinations on education quality. On theoretical grounds, the paper argues that such examinations should increase high school achievement, particularly in examination subjects, and that teachers and students and parents and school administrators should focus more on academic achievement when making school-quality decisions. On the negative side, exit examinations may lead to a tendency to concentrate on learning facts, rather than understanding contexts.”
Department Of Labor Testing: Seizing An Opportunity To Increase The Competitiveness Of American Industry And To Raise The Earnings Of American Workers, John H. Bishop
John H Bishop
[Excerpt] The professionalism that the American military recently exhibited in the Persian Gulf is in no small part due to care with which it selects, assigns and trains its soldiers. The military's success in preparing this highly skilled workforce was made possible by decades of research into occupational competency assessment, aptitude test development and validity research. The Department of Labor is also a world leader in the development and validation of employment aptitude tests and there is now an opportunity for this expertise to be implemented in ways that can enhance the nations's competitiveness and improve the standard of living …
The Productivity Consequences Of What Is Learned In High School, John H. Bishop
The Productivity Consequences Of What Is Learned In High School, John H. Bishop
John H Bishop
[Excerpt] Another way of evaluating American performance in math and Science is to make comparisons with the upper secondary students of other nations. In the 196Os, the low ranking of American students in such comparisons was defended by citing the fact that higher proportions of American youth took the international test. This is no longer the case. Figures 1 to 4 plot the scores in Algebra, Biology, Chemistry and Physics against proportion of the 18-year old population in the types of courses to which the international test was administered. Where large proportions of the age cohort took the test, lower …
Are Early Investments In Computer Skills Rewarded In The Labor Market? , Ferran Mane, John H. Bishop
Are Early Investments In Computer Skills Rewarded In The Labor Market? , Ferran Mane, John H. Bishop
John H Bishop
The paper assesses the relationship between investments in computer skills by adolescents and earnings at age 26. The heaviest investors earned 9 to 16 percent more than otherwise equivalent NELS-88 classmates. The payoff to early computer skills was substantial in jobs involving intense and complex uses of computers; negligible when computers were not used at work. It was non-gaming use of computers outside of school that enhanced future earnings, not playing video/computer games—which lowered earnings. Children in low SES families invested less in computer skills and thus benefited less from the job opportunities generated by the digital revolution.
Is The Test Score Decline Responsible For The Productivity Growth Decline?, John H. Bishop
Is The Test Score Decline Responsible For The Productivity Growth Decline?, John H. Bishop
John H Bishop
[Excerpt] The test score decline between 1967 and 1980 was large (about 1.25 grade-level equivalents) and historically unprecedented. New estimates of trend in academic achievement, of the effect of academic achievement on productivity and of trend in the quality of the work force are developed. They imply that if test scores had continued to grow after 1967 at the rate that prevailed in the previous quarter century, labor quality would now be 2.9 percent higher and 1987 GNP $86 billion higher.
Employer Training And Skill Shortages: A Review Of The State Of Knowledge With Recommendations For Future Research By The Department Of Labor, John H. Bishop
Employer Training And Skill Shortages: A Review Of The State Of Knowledge With Recommendations For Future Research By The Department Of Labor, John H. Bishop
John H Bishop
"This report proposes that the Department of Labor undertake a program of research designed to inform the policy debate related to skill shortages and the role of employer training in ameliorating them. The paper reviews the currently available evidence and then proposes new research on seven questions."
Does The Targeted Jobs Tax Credit Create Jobs At Subsidized Firms?, John H. Bishop, Mark Montgomery
Does The Targeted Jobs Tax Credit Create Jobs At Subsidized Firms?, John H. Bishop, Mark Montgomery
John H Bishop
This paper uses the results of a survey of more than 3500 private employers to determine whether use of the Targeted Jobs Tax Credit (TJTC) alters the level of a fIrm's employment and/or whom the fInn hires. We estimate that each subsidized hire generates between .13 and .3 new jobs at a participating fIrm. Use of the program also appears to induce employers to hire more young workers (age 25 and under). Our results suggest, however, that at least 70% of the tax credits granted employers are payments for workers who would have been hired even without the subsidy. Such …
Some Thoughts On The Cost Effectiveness Of Graduate Education Subsidies, John H. Bishop
Some Thoughts On The Cost Effectiveness Of Graduate Education Subsidies, John H. Bishop
John H Bishop
[Excerpt] How much should doctorate training be subsidized? The answer proposed is, "Doctorate training should be subsidized to the extent and only to the extent that it produces externality or public benefits – i.e. benefits received by people other than the one receiving the diploma." This value judgment derives from three propositions: (1) In general, an adult knows better than anyone else what is best for himself; (2) the price (measured in both time and money) he is willing to pay for graduate education is the best measure of how much he values it relative to other offerings; and (3) …
Productivy Growth And Tenure: A Test Of On-The-Job Training Theories Of Wage And Productivy Growth, John H. Bishop, Stan Stephenson
Productivy Growth And Tenure: A Test Of On-The-Job Training Theories Of Wage And Productivy Growth, John H. Bishop, Stan Stephenson
John H Bishop
[Excerpt] Studies have found consistently that there is a strong positive correlation between a worker's tenure with a firm and that individual's wage rate. Becker's (1975) on-the-job training (OJT) model is the most widely accepted explanation for this association. The OJT model posits that new employees receive training early in their tenure, which raises their productivity both in and outside the firm. Competition forces the employer to pay employees who have completed this training at least as much as they are worth outside the firm less transfer costs. Jobs that offer such training are more attractive than jobs that do …
On-The-Job Training Of New Hires, John H. Bishop
On-The-Job Training Of New Hires, John H. Bishop
John H Bishop
This paper presents an analysis of a unique data set containing measures of the time devoted to training during the first three months on a job and the productivity consequences of that training. The major findings derived from the analysis of the data on new hire training may be summarized as follows.
Why Are Wage Profiles So Flat During The First Year On A Job?, John H. Bishop, Suk Kang
Why Are Wage Profiles So Flat During The First Year On A Job?, John H. Bishop, Suk Kang
John H Bishop
This paper presents evidence that productivity net of general training costs rise 4 or 5 times more rapidly than wage rates during the first 2 years on a job. This occurs for three reasons. First, sorting, high job search costs and the reputational damages that result from premature separations cause workers to prefer front loaded compensation packages which reduce the likelihood of involuntary terminations. Second, due to progressive income taxation and poor access to credit, workers discount the future more heavily than employers. Front-loading compensation is, therefore, a relatively cheap way for employers to attract top quality new hires. Finally, …
Occupational Competency As A Predictor Of Labor Market Performance, John H. Bishop
Occupational Competency As A Predictor Of Labor Market Performance, John H. Bishop
John H Bishop
[Excerpt] The paper examines the suitability of occupational competency measurement as a device for enhancing the accountability of vocational education programs. In order for occupational competency tests to be used as program performance measures, they must be demonstrated to be valid predictors of labor market outcomes like earnings and wage rates and of job performance in appropriate occupations. The paper undertakes this task.
Scientific Illiteracy: Causes, Costs And Cures, John H. Bishop
Scientific Illiteracy: Causes, Costs And Cures, John H. Bishop
John H Bishop
[Excerpt] This article examines the causes of the learning deficits in science, math and technology, evaluates their social costs and then recommends policy measures for remedying the problems identified. Following the American Association for the Advancement of Science's Science for All Americans report, I define the domain of "science" very broadly to include mathematics and technology along with the natural sciences. To avoid confusing readers accustomed to the narrower definition of science, broadly defined science is referred to as science, mathematics and technology.
In Search Of A Niche, John H. Bishop
In Search Of A Niche, John H. Bishop
John H Bishop
"As enrollment in secondary vocational education programs declines and employers re-evaluate the attributes needed for success in today’s job market, some observers of the U.S. education system have called for schools to limit – or even eliminate – the teaching of occupational skills. Does this mean employers don’t reward such training?"
The Federal Role In Education Reform, John H. Bishop
The Federal Role In Education Reform, John H. Bishop
John H Bishop
[Excerpt] The analysis of the causes of the American apathy regarding teaching and learning has important implications for the curriculum. Many of the weaknesses of math and science curricula--the constant review and repetition of old material, the slow pace and minimal expectations--are adaptations to the low level of effort most students are willing to devote to these subjects. When considering proposed revisions of the curriculum, one must remember that motivating students to take tough courses and to study hard must be a central concern.
Do Empoyers Share The Costs And Benefits Of General Training?, John H, Bishop
Do Empoyers Share The Costs And Benefits Of General Training?, John H, Bishop
John H Bishop
This paper presents evidence that during the first year or so of a worker's tenure, wages rise more slowly than productivity net of training costs when training is predominantly general and that many employers are, in effect, induced to share the costs and benefits of general on-the-job training with their employees. This occurs for three reasons. First, sorting, high job search costs and the reputational damages that result from premature separations make a dismissed worker's next best alternative decidedly unattractive and this causes workers to prefer front loaded compensation packages which reduce the likelihood of involuntary terminations. Second, since most …
Do Some Employers Share The Costs And Benefits Of General Training?, John H. Bishop, Suk Kang
Do Some Employers Share The Costs And Benefits Of General Training?, John H. Bishop, Suk Kang
John H Bishop
[Excerpt] One of the central propositions of the human capital theory of on-the-job training is that workers pay all the costs and receive all the benefits of general training (see Ehrenberg and Smith 1996, Filer, Hammermesh and Rees 1996, Borjas 1996, Kaufman 1986). Since general training raises a worker's ability to be productive in other organizations as well as the one providing the training, the training firm must pay a wage commensurate with the trained worker's new higher level of productivity if they are to prevent the loss of their trained workers. Since the workers, not the firm, get the …
The Impact Of Academic Competencies On Wages, Unemployment And Job Performance, John H. Bishop
The Impact Of Academic Competencies On Wages, Unemployment And Job Performance, John H. Bishop
John H Bishop
[Excerpt] The scientific and mathematical competence of American high school students is generally recognized to be very low. Of those graduating from high echool in 1987, only 45 percent had taken chemistry, only 20 percent had taken physics and only 12 percent had taken pre-calculus and only 6 percent had taken calculus (Educational Testing Service 1990). The National Assessment of Educational Progress (NAEP) reports that only 7.5 percent of 17 year old students can "integrate specialized scientific information" (NAEP 1988a p.51) and 6.4 percent "demonstrated the capacity to apply mathematical operations in a variety of problem settings." (NAEP 1988b p. …
Making Vocational Education More Effective For At-Risk Youth, John H. Bishop
Making Vocational Education More Effective For At-Risk Youth, John H. Bishop
John H Bishop
"Occupationally specific vocational training pays off for disadvantaged students, but only if graduates work in the jobs they were trained for. Implication: Vocational educators must help make sure that the skills they teach are used."
Applying For Entitlements: Employers And The Targeted Jobs Tax Credit, John H. Bishop, Suk Kang
Applying For Entitlements: Employers And The Targeted Jobs Tax Credit, John H. Bishop, Suk Kang
John H Bishop
The Targeted Jobs Tax Credit is probably the most outstanding example of a generous entitlement program with very low participation rates. Only about 10 percent of eligible youth are claimed. The causes of the low participation rate were analyzed by estimating a poisson model of the number of TJTC eligibles hired and certified during 1980, 1981 and 1982. Information costs, both fixed and variable, were found to be key barriers to TJTC participation. The cost effectiveness of TJTC is low because the stigma and recruitment costs of hiring additional TJTC eligibles are very high. Employers find it relatively cheap to …
Underinvestment In On-The Job Training?, John H. Bishop
Underinvestment In On-The Job Training?, John H. Bishop
John H Bishop
[Excerpt] A growing number of commentators are pointing to employer sponsored training (OJT)as a critical ingredient in a nation's competitiveness. American employers appear to devote less time and resources to the training of entry level blue collar, clerical and service employees than employers in Germany and Japan (Limprecht and Hayes 1982, Mincer and Higuchi 1988, Koike 1984, Noll et al 1984, Wiederhold-Fritz 1985). In the United States, only 33 percent of workers with 1 to 5 years of tenure report having received skill improvement training from their current employer (Hollenbeck and Wilkie 1985). Analyzing 1982 NLS-Youth data, Parsons (1985) reports …
Incentives For Learning: Why American High School Students Compare So Poorly To Their Counterparts Overseas, John H. Bishop
Incentives For Learning: Why American High School Students Compare So Poorly To Their Counterparts Overseas, John H. Bishop
John H Bishop
[Excerpt] The scientific and mathematical competence of American high school students is generally recognized to be very low. The National Assessment of Educational Progress (NAEP) reports that only 7.5 percent of 17 year old students can "integrate specialized scientific information" (NAEP 1988a p.51) and 6.4 percent "demonstrated the capacity to apply mathematical operations in a variety of problem settings." (NAEP 1988b p. 42) There is a large gap between the science and math competence of young Americans and their counterparts overseas. In the 1960s, the low ranking of American high school students in such comparisons was attributed to the fact …
What We Know About Employer-Provided Training: A Review Of Literature, John H. Bishop
What We Know About Employer-Provided Training: A Review Of Literature, John H. Bishop
John H Bishop
While the importance of on-the-job training is recognized by everyone, it is a phenomenon that is very difficult to study. Most training is informal and hard to measure and its effects on productivity are even more difficult to quantify. An elegant theory explaining how the quantity of training is determined and who pays for and benefits from it has been available for more than a third of a century (Becker 1962). However, the absence of data on the key theoretical constructs of the theory--general training, specific training, informal training and productivity growth--means that the only predictions of the theory that …
The Deskilling Vs Upskilling Debate: The Role Of Bls Projections, John H. Bishop, Shani Carter
The Deskilling Vs Upskilling Debate: The Role Of Bls Projections, John H. Bishop, Shani Carter
John H Bishop
[Excerpt] The growing shortage of professionally trained workers and the rising skill premiums will tend to cause supply to increase more rapidly than we have projected. But the gap between the projected growth of demand and supply is huge. Just to maintain the balance between the growth of supply and the growth of occupational demand that prevailed in the 1980s, itself a period of shortage, it will be necessary to increase in the stock of college graduates in the year 2000 by 3.7 million or, put another way, to raise the number of college graduates entering the labor forces by …
Compensation In Nonprofit Organizations, Kevin F. Hallock
Compensation In Nonprofit Organizations, Kevin F. Hallock
Kevin F Hallock
Although the nonprofit sector is enormous, we know little about how workers there are compensated. This may be due, in part, to the fact that the literature is scattered across many fields including Human Resources Management, Accounting, Economics, Finance, Organizational Behavior, Political Science, and Sociology. The paper aims to synthesize the research on nonprofits from an economics point of view, while carefully considering the work in the many other areas. In addition to using data from the U.S. census to provide a description of employment and wages in the nonprofit sector as well as a comparison with the for-profit sector, …