We consider the links between training, the quality of labour and establishment performance, using a proxy for performance, commercial survival. We develop a model in which managers have varying beliefs about the efficacy of education and training, leading to potential variation in the optimal...

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 unusually detailed information on the duration of training, the direct costs of training, and several firm characteristics such as their...