A study examined the impact of public policy on education and training in the private sector. During the study, the following research activities were completed: a statistical examination of the scope and nature of firm-supplied training, 20 case studies of the training supplied by large firms representing a diverse set of industries across the country, and a review of key public policies and programs. These analyses indicated that of the approximately 5 million workers now receiving formal training in the workplace, approximately 3.5 million are participating in programs financed and organized (but not necessarily conducted) by firms. Generally speaking, training is being offered to comparable numbers of men and women; however, minorities and those individuals with the least prior education still remain the least likely to receive firm-sponsored training. Most of the training provided by the firms studied was job specific and highly sensitive to business cycles. Although the decentralization of job training programs should be extended, policymakers should continue to recognize the importance of the Federal Government as a modest, yet necessary unifying force in shaping policies for the delivery of firm-sponsored training and should formulate legislation concerning educational appropriations and taxes accordingly. (MN)