In the last several years, Federal funds have subsidized occupational training programs which have occurred on the job under employer sponsorship and supervision. This report examines the question of whether Federal financing is substituted for private efforts which would occur in its absence, and how such substitution can be avoided in the design and administration of programs. The first section of the paper describes the endogenous training patterns for tool and die makers, offset printers, and restaurant cooks and chefs. These are employer-organized training and worker-programed training, in which the worker takes the initiative for programing his own training by movement from job to job in search of a new experience. The second part of the study reviews the process through which the programs are funded and the motivation of the sponsoring agency. (BC)