On-the-Job Training
On-the-job training is a source of human capital formation because:
- It reduces worker productivity
- The return in the form of enhanced labour productivity is more than the cost — Correct Answer
- It decreases wages of workers
- It only benefits the employer
Explanation:
Correct Answer Explanation
The return of such expenditure in the form of enhanced labour productivity is more than the cost of it.
Key Points:
- Two forms: (i) Training within the firm under a skilled worker, (ii) Off-campus training.
- Firms insist workers work for a specific period after training to recover benefits.
📚 About this Topic — CH-4: HUMAN CAPITAL FORMATION IN INDIA
This multiple choice question is from CH-4: HUMAN CAPITAL FORMATION IN INDIA, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-4: HUMAN CAPITAL FORMATION IN INDIA to strengthen your preparation.
