Human 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. In contrast, fewer than 10% receive basic skills training, such as elementary reading, writing, and arithmetic.
Suggested citation: “Human Capital Investment,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-10, pp. 13-14, 10.01.1997.