Does training generally work? The returns to in-company training

Using data from surveys of enterprises in Ireland in 1993 and 1996-97, the authors estimate the productivity effects of general training, specific training, and all types of training combined. Statistically significant positive effects on productivity are found both for all training and for general training, but not for specific training. The positive effect of general training remains when the researchers control for factors such as changes in work organization, corporate re-structuring, firm size, and the initial level of human capital in the enterprise. The impact of general training varies positively with the level of capital investment.