Research into the benefits to firms of investment in training has focused on the relationship
between training, productivity and wages, mainly in developed countries. The
results are divergent. Using data from Canadian firms, Bartel (1994) does not find that
training affects productivity, whereas Black and Lynch (1996), using data from the United
States, find that training has a positive impact on productivity. Boon and van der Eijken
(1998), Barrett and O’Connell (2001) and Ballot et al (2006) focus, respectively, on Dutch,
Irish and French firms and conclude that training has a positive impact on productivity
growth. We are aware of only one published study examining the issue in LDCs:
Rosholm et al (2007), considering Kenyan and Zambian firms, find that following
training, workers’ earnings improve by about 20 per cent.