Costs, Benefits And The Internal Rate Of Return To Firm Provided Training
- Topics:
- Organization
- Tags:
- Benefit,
- Human Resources,
- Investment,
- Job Training,
- Training,
- Training And Certification,
- University College London,
- Workforce Management
- Source:
- University College London
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Overview: This paper estimates the rate of return to firm investments in human capital in the form of formal job training. A panel of large firms is used with detailed information on the duration of training, the direct costs of training, and several firm characteristics. The estimates of the return to training vary substantially across firms. On average it is ?7% for firms not providing training and 24% for those providing training. Results suggest that formal job training is a good investment for many firms and the economy, possibly yielding higher returns than either investments in physical capital or investments in schooling. In spite of this, observed amounts of formal training are very small.
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Format: PDF | Size: 347KB | Date: Apr 2006 | Pages: 37
