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The returns to training and the determinants of training expenditure: The case of manufacturing firms in South Africa


Date posted:

2022/11/01

Publication year:

2016

Corporate author/s:

Department of Higher Education and Training (DHET); Human Resource Development Council (HRDC); Labour Market Intelligence Partnership (LMIP)

Person/s author/s:

Naidoo, Karmen; Bhorat, Haroon

Output-type:

research report

Format:

pdf

This report makes use of a unique survey dataset of manufacturing firms in South Africa to investigate the returns to workplace training. This survey was conducted within a broader national project, the Labour Market Intelligence Partnership (LMIP), which has an important aim of building a national labour market intelligence system (discussed further on). The dataset is comprised of employee-level data for about 6 400 employees from 230 firms, across five geographically diverse manufacturing subsectors and firm sizes. We are therefore able to control for a number of individual and firm-level characteristics to assess the average returns to training, the returns to different types of training, as well as the group-specific returns to training. This is a seminal survey that, for the first time in South Africa, provides detailed descriptive and econometric insight into firm training behaviour and the individual returns to training.

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