Carneiro, PedroAlmeida, Rita2012-03-302012-03-302009Labour Economics09275371https://hdl.handle.net/10986/5552In 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.ENHuman CapitalSkillsOccupational ChoiceLabor Productivity J240Firm Performance: Size, Diversification, and Scope L250Personnel Economics: Training M530Journal ArticleWorld Bank