... defined as part of investment expenditure although generally this term is related to technological factors such as machinery,.. (Source Stephen W Smith, 1994) If we look at the concept of training then we see that it is an investment to train employees up so that they are able to produce more as they will have more knowledge and skills to do that job. The Basic Human capital model is by Becker ('Human Capital', 1975) this model looks at the quality of the labour supply. This model helps to analyse the determination of wage differences in the labour market among other things Looking at the neoclassical model the rewards to labour are strictly dependant upon its productivity (W=MRP) (source Stephen W Smith, 1994 pg 75) Different production is due to difference in training of otherwise homogenous workers. Human capital emphasises the importance of education and training in employment. This can be split into two ...

See this essay or coursework document in full right now