Almeida, Rita K.Faria, Marta2021-07-232021-07-232014-12-012193-9020http://hdl.handle.net/10400.14/34242Skills shortages and skill mismatch are a pressing concern for policymakers in several developing countries, and in East Asia specifically. Providing on-the-job training can be an effective policy tool to shape the skills of the existent workforce to the specific needs of the firms. This paper explores a unique data set of matched employer-employee data for Malaysia and Thailand to estimate the wage return to on-the-job training in these two countries. Exploring propensity score matching estimates, we show that the average wage returns to on-the-job training are 7.7% for Malaysia and 4.5% for Thailand. Furthermore, we find evidence that the wage returns to on-the-job training are higher for males than for females in Malaysia and that, for both countries, returns are higher for workers with at least secondary education. JEL codes: J24; J30engMatched employer-employee dataOn-the-job trainingWagesjournal article10.1186/2193-9020-3-1984983283597