This paper applies the familiar theoretical distinction between general and specific training to
the empirical task of estimating the returns to in-company training. Using a firm-level dataset
which distinguishes between general and specific training, we test for the relative effects of
the two types of training on productivity growth. We find that although general training has a
statistically positive effect on productivity growth, no such effect is observable for specific
training. This positive effect of general training remains when we control for factors such as
changes in work organisation and corporate re-structuring, firm size and the initial level of
human capital in the enterprise. Moreover, the impact of general training varies positively
with the level of capital investment