Type specific returns to enterprise-related training

Abstract

In this paper we develop an empirical model for heterogeneous human capital investment decisions. We apply this model to the investment in enterprise-related training. Three types of training investments are distinguished: technical training, economic-administrative training, and other enterprise-related training. The empirical results show that technical training yields relatively the lowest wage gain, while other enterprise-related training yields the highest wage gain. The results suggest that access into training is determined by employer selection of workers for training and that for workers entry into training is restricted. We also find evidence to indicate underinvestment in enterprise-related training. © 1995.