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The return to firm investments in human capital

2008; Elsevier BV; Volume: 16; Issue: 1 Linguagem: Inglês

10.1016/j.labeco.2008.06.002

1879-1034

Rita Almeida, Pedro Carneiro,

Economic Policies and Impacts

In this paper we estimate the rate of return to firm investments in human capital in the form of formal job training. We use a panel of large firms with detailed information on the duration of training, the direct costs of training, and several firm characteristics. Our estimates of the return to training are substantial (8.6%) for those providing training. Results suggest that formal job training is a good investment for these firms possibly yielding comparable returns to either investments in physical capital or investments in schooling.