Abstract

This paper investigates the impact of investment in human capital (off-the-job training in short term) on productivity of the small and medium enterprises (SMEs) by using Propensity Score Matching (PSM) method with dynamic approach. The paper employs the data from two surveys on the SMEs in Vietnam in the year of 2009 and 2011 that provide detailed information about training and firm characteristics. The results found that training has significantly positive impact on the productivity of household business, but there is no evidence on the impact of training on productivity of the firms in formal sector; and there is no evidence for the impact of training activities on productivity in the near future (one-or-two-year after training) for both household business and formal enterprises. Besides, qualitative approach shall be conducted to provide more description on training efficiencies in some specific cases.

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