Question

Define and discuss the concepts of firm-specific and general on-the-job training, including who pays for the education.

Answer 1

The firm specific on the job training process requires the firms to teach its workers about the new skills introduced or updated according to the new technology. The firm’s training cost depends negatively on the ability of the labour force of the form and same positively on the level of technology which they use. The firm usually hire the workers which are able to learn at the minimum cost. The human capital of firm specific training collects at a quick rate when the labour is assigned for the training program then when the worker is assigned the job. The firm specific on the job training programs provide the workers with the updated knowledge of Technology and skills which day can use for the production of the commodity.
The general on the job training help the workers general human capital, increase the productivity of the workers and help them being mentally strong. It gives the employees the skills and knowledge which can rise the share value, and their productivity. It is basically providing education related to their job which can enhance their productivity skill in the firm.