Question

Labor Questions

Provide an example that shows the difference between general and specific training as it pertains to Human Capital Theory.

Answer 1

Giving training to the workers of a firm or an entity, has a paramount importance in its well being. It is a part of their investment also. According to the entity it is their discretion how to give training to its workers, whether a general or specific training is needed. A training is said to be 'general' when it is used for the production of a wide variety of products or can be used for a wide variety of industries and it is said to be 'specific' when it is used for limited set of products or limited set of industries.

For example: General managers, Sales occupations and Elementary services occupations resemble the "general training", while, market oriented skilled Engineer, Skilled Agriculturist, Accounting specialist resemble the "specific training".