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Suppose that the on-the-job training at Firm A is general in nature and the on-the-job training at Firm B is specific. Suppose also that workers
Suppose that the on-the-job training at Firm A is general in nature and the on-the-job training at Firm B is specific. Suppose also that workers have the same levels of the value of marginal product of labour in the post-training period at both firms. Then the human capital theory predicts that in the post-training period the workers at Firm A will earn a higher net wage and, hence, are likely to have a lower-quit rate than the workers at Firm B.
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