The Return to Firm Investment in Human Capital

Almeida, Rita; Carneiro, Pedro

doi:10.1596/1813-9450-3851

collection.link.5	https://openknowledge.worldbank.org/handle/10986/9
collection.name.5	Policy Research Working Papers
dc.contributor.author	Almeida, Rita
dc.contributor.author	Carneiro, Pedro
dc.date.accessioned	2012-06-21T22:32:59Z
dc.date.available	2012-06-21T22:32:59Z
dc.date.issued	2006-02
dc.date.lastModified	2021-04-23T14:02:40Z
dc.description.abstract	In this paper the authors estimate the rate of return to firm investments in human capital in the form of formal job training. They use a panel of large firms with unusually detailed information on the duration of training, the direct costs of training, and several firm characteristics such as their output, workforce characteristics, and capital stock. Their estimates of the return to training vary substantially across firms. On average it is -7 percent for firms not providing training and 24 percent for those providing training. 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 small.	en
dc.identifier	http://documents.worldbank.org/curated/en/2006/02/6600547/return-firm-investment-human-capital
dc.identifier.uri	http://hdl.handle.net/10986/8742
dc.language	English
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Policy Research Working Paper; No. 3851
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo/
dc.subject	BOOK VALUE
dc.subject	BUSINESS SCHOOL
dc.subject	COLLEGE DEGREES
dc.subject	COST FUNCTIONS
dc.subject	COST OF TRAINING
dc.subject	DISCOUNTED VALUE
dc.subject	ECONOMETRICS
dc.subject	ECONOMIC RESEARCH
dc.subject	ECONOMIC SURVEYS
dc.subject	ECONOMICS OF EDUCATION
dc.subject	EDUCATED WORKERS
dc.subject	EDUCATIONAL ATTAINMENT
dc.subject	EDUCATIONAL QUALITY
dc.subject	EMPLOYMENT
dc.subject	ENDOGENOUS VARIABLES
dc.subject	EXTERNALITY
dc.subject	FORMAL TRAINING
dc.subject	FORMAL TRAINING PROGRAMS
dc.subject	HUMAN CAPITAL
dc.subject	HUMAN RESOURCES
dc.subject	IMPERFECT COMPETITION
dc.subject	INFORMATION TECHNOLOGY
dc.subject	INVENTORY
dc.subject	JOB TRAINING
dc.subject	KNOWLEDGE ECONOMY
dc.subject	LABOR MARKETS
dc.subject	LEARNING
dc.subject	LIFELONG LEARNING
dc.subject	LITERATURE
dc.subject	MARGINAL BENEFITS
dc.subject	MARGINAL COST
dc.subject	MARGINAL COSTS
dc.subject	MARGINAL PRODUCT
dc.subject	MARGINAL PRODUCTIVITY
dc.subject	OCCUPATIONS
dc.subject	PAPERS
dc.subject	POLITICAL ECONOMY
dc.subject	PRIMARY EDUCATION
dc.subject	PRIVATE SECTOR TRAINING
dc.subject	PRODUCTION FUNCTION
dc.subject	PRODUCTION FUNCTIONS
dc.subject	PRODUCTIVITY
dc.subject	PUBLIC TRAINING
dc.subject	SCHOOLING
dc.subject	SKILLED OCCUPATIONS
dc.subject	TEACHERS
dc.subject	TOTAL COSTS
dc.subject	TRAINING COSTS
dc.subject	TRAINING INSTITUTIONS
dc.subject	TRAINING PROGRAMS
dc.subject	UNIVERSITY COLLEGE
dc.subject	VALUE ADDED
dc.subject	WAGES
dc.subject	WORKING HOURS
dc.title	The Return to Firm Investment in Human Capital	en
okr.doctype	Publications & Research :: Policy Research Working Paper
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/2006/02/6600547/return-firm-investment-human-capital
okr.globalpractice	Macroeconomics and Fiscal Management
okr.globalpractice	Education
okr.googlescholar.linkpresent	yes
okr.identifier.doi	10.1596/1813-9450-3851
okr.identifier.externaldocumentum	000016406_20060215170250
okr.identifier.internaldocumentum	6600547
okr.identifier.report	WPS3851
okr.language.supported	en
okr.pdfurl	http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/02/15/000016406_20060215170250/Rendered/PDF/wps3851.pdf	en
okr.topic	Tertiary Education
okr.topic	Education :: Primary Education
okr.topic	Economic Theory and Research
okr.topic	Access and Equity in Basic Education
okr.topic	Education :: Education For All
okr.topic	Macroeconomics and Economic Growth
okr.unit	Development Research Group (DECRG)
okr.volume	1 of 1

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Evaluating the Impact of Conditional Cash Transfer Programs : Lessons from Latin America

Shock Waves : Managing the Impacts of Climate Change on Poverty

Decarbonizing Development : Three Steps to a Zero-Carbon Future

The Return to Firm Investments in Human Capital

Mandated Benefits, Employment, and Inequality in a Dual Economy

Enforcement of Labor Regulation, Informal Labor, and Firm Performance

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Evaluating the Impact of Conditional Cash Transfer Programs : Lessons from Latin America

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