Lifelong learning and skill flexibility are especially important for workers in China, where structural economic adjustment has generated 22 million layoffs from state-owned enterprises since 1997. Skills that were in huge demand in previous years, such as accounting, international trade, and language translation, are now facing serious oversupply pointing to the need for a workforce that is both highly educated and adaptable. On-the-job training, which is mostly informal and is usually carried out within a firm while the worker is still working, and off-the-job training, which takes more formal forms and is usually outside of the firm, are two activities that increase skills and employability. Using data collected from nearly 3500 urban Chinese residents aged 25-65, it was found that off-job training in previous firms significantly raises wages at current firms, while previous on-job training has no effect on current wages. However, after controlling for unobserved motivations and abilities, the training-wage relationship of both types of training became insignificant. Based upon results that have been found true in competitive labor markets around the world that suggest that training improves human capital and hence raises wages, it is recommended that the Chinese government direct resources to more general type of training rather than firm-specific training. (Contains 13 references and 7 tables.) (MO)