Using a review of literature and data collected from worker and employer surveys, a study examined on-the-job training and its implications. Among the factors analyzed were the following: (1) on-the-job training as an investment in human capital; (2) measures of on-the-job training; (3) who receives on-the-job training; (4) how well do we measure on-the-job training; (5) the impact of training on wages and productivity; and (6) training and firm recruiting strategies. The study found that most newly hired workers undergo on-the-job training, although employers report more training than workers do. College-educated workers and workers employed in large establishments receive more training than their less-educated counterparts in smaller firms. The study also found that training generates productivity growth and increases wage growth, although it slightly decreases the starting wage. To avoid costly mistakes, firms make greater recruiting efforts to find workers for jobs with more extensive on-the-job training. The study concluded that, if government wants to encourage on-the-job training in private industry, it should target under-served groups, and it should allow industry to determine the most efficient method of training. Merely requiring more formal training could result in higher expenditures without actually increasing the amount of training workers receive. (150 references) (KC)