The proposed work addressed issues of obvious importance to society : the measurement of post-school investments and their profitability, changes in investment volumes and profitability over time, the contribution of these investments to economic growth , the interrelation of these investments with technological change and the substitutability between schooling and post-schooling investments. The work will estimate the economy-wide investment in on-the-job training, including both the opportunity costs borne by workers and employer investments in training. These estimates will be based on two important microeconomic data sets - the Panel Survey on Income Dynamics and the Current Population Survey. The direct estimates obtained from these data sets are to be compared to estimates of the same costs based on wage profiles. They will also be used to verify the human capital interpretation of wage profiles. Another focus of the work is on the responses of this type of human capital formation to technological changes and the contribution made thereby to economic growth.
