ECON 1 Lecture Notes - Lecture 7: Work Council, Bilateral Monopoly, Monopsony
Document Summary
Definition: refers to a systematic approach to learning and development to improve individual, team and organizational effectiveness. Development refers to activities leading to the acquisition of new knowledge or skills for purpose of person growth. Training process: training needs assessment, design and delivery, evaluation, transfer. Setting: labor market, exchange of effort for compensation. Basic principle: agents vary in productivity because of different stocks of hc. Hc comprises attributes like skills, knowledge and health. Accumulation of hc occurs through investments in schooling, on-the-job training, medical care, migration and searching for information about prices and incomes . Individuals, while investing in their hc, sacrifice some part of their income in return for a higher income in the future. Can be traded on the labor market (mobility) Follows competitive factor market logic (markets are efficient) Has a lower value in alternative employment. Only imperfectly tradable on the labor market (mobility leads to inefficient use of hc)
