To aid in the development and validation of a cost analytic model for Air Force on-the-job training (OJT), this report reviews the literature on the economics of education and training through mid-1976 inclusively. The first two of the four parts in the document provide narrative discussions of the literature, and the last two contain the bibliographic lists. In section 1 six studies on the costs of OJT are analyzed and evaluated, while in section 2 economics literature of a more general nature is discussed, focusing on three background areas: welfare theory, human capital, and joint production (two or more outputs from one production process). Section 3 is an annotated bibliography of eighty-eight items; the annotations, which are only descriptive, not evaluative, vary in length from one sentence to half a page. The last section consisting of four and one-half pages is an unannotated list of additional references. The items chosen in the two sections encompass journal articles, reports, monographic studies, and texts. Where applicable, Rand report numbers and ERIC document numbers are given. (ELG)