INVESTMENT IN TRAINING: PRODUCTIVITY AND HUMAN CAPITAL VALUE

The aim of the paper is to illustrate importance of investment into employees' training on the evidence from EU countries and the Czech Republic and its effects on their productivity and increase of human capital value. As Becker (1993) points out, many workers increase their productivity by learning new skills and perfecting old once while on the job. This investment can be very profitable however also risky because this value leaves a firm in case an employee decides to leave a job. Trained employees represent a competitive advantage for a firm however it is very important to invest in it effectively. Ineffective education and training can cause skills or education mismatch. Importance of training is presented and evaluated on secondary data from Eurostat as well as primary data collected between part-time student of the Faculty of Economics in Liberec and selected Czech companies. Results are analysed based on human capital theory as well as other alternative approaches are mentioned.