Abstract
There have been few studies in the US on the impact of human capital investments, such as education and employer-provided training, on productivity. Some of the researchers who have been able to examine the linkage between training and productivity have used a subjective measure of productivity. The main problem with subjective measures of productivity is that they are not comparable across firms or even within firms over time. Using unique data from the National Center on the Educational Quality of the Workforce National Employers' Survey, findings are presented on the impact of human capital investments on business productivity. Human capital is an important determinant of establishment productivity. Training has a more complex impact on the productivity of establishments, and recruitment strategies of establishments also play an important role in their productivity.