Harvesting What They Grow: Can Firms Get a Return on Investments in General Skills?
May 16, 2002
D. Finegold, G. Benson, and S. Mohrman explain that economic theory predicts that firms will not invest in developing employees’ general skills because unlike investments in physical capital, this human capital can walk out the door at any time. Companies, however, are spending billions of dollars each year on general education and training programs.