Returns to different forms of job related training: Factoring in informal learning
This study aims at disentangling the returns to formal, non-formal and informal training and fills key knowledge gaps. Informal learning is found to be by far the most common form of job-related learning at work. Learning informally at work is found to be associated with 3.5% higher wages, on top of the wage returns of non-formal training which amount to about 11%. Work environments which apply high performance work organisation practices – i.e. where workers have more autonomy and work in teams – are found to nurture a training culture that yields high returns. Workers in these contexts are 12% more likely to experience informal learning. In addition, they also reap higher returns from the training they attend, both non-formal and informal. This suggests that HPWP may amplify the benefits of learning at work, possibly giving workers more opportunities to turn what they learn into immediate use because of the increased flexibility in organising once work.