Education, training and economic performance: Evidence from establishment survival data

We consider the links between training, the quality of labor and establishment performance, using an indicator of firm performance, commercial survival. We place our evidence in the framework of a model in which managers have varying beliefs about the efficacy of education and training, leading to potential variation in their provision. We find that training and education yield significant positive effects on firm performance. Moreover, education and training interact positively in their effect on survival.