This article uses data collected by the Commissioners of Factories to
demonstrate how, in 1833, sums invested by British male cotton factory
workers in on-the-job training, returns to that investment, and avera
ge levels of skill acquired were surprisingly high by modern standards
. Data on female earnings indicate the discriminatory effect of social
and other factors on women's opportunities to benefit from on-the-job
training in cotton factories. Generalized to include experience in ot
her factory based industries, the results make it hard to maintain the
view that in 1833, British factories operated with a largely unskille
d labour force.