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The return to firm investments in human capital

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  • Almeida, R.
  • Carneiro, P.

Abstract

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.

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Bibliographic Info

Paper provided by University College London in its series Open Access publications from University College London with number http://discovery.ucl.ac.uk/16154/.

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Date of creation: Jan 2009
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Publication status: Published in Labour Economics (2009-01) v.16, p.97-106
Handle: RePEc:ner:ucllon:http://discovery.ucl.ac.uk/16154/

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