Human Capital Investment H uman Capital Investment Human capital theory suggests that training, whether formal or on the job, enhances worker productivity and thus leads to higher wages.
Training prepares new workers and enhances the skills of existing workers.
More U.S. employees now receive computer-related training from their current employer than any other type of instruction. Training is not without cost, however, in terms of the time that workers would otherwise have spent at their jobs. Less training for part-time workers is also consistent with human capital theory. Similar patterns emerge when one looks at the demographics of those who receive formal job training. The youngest and oldest employees receive far less training than their middle-aged counterparts.