The type of human capital formation that occurs in the business sector is called

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On-the-job training occurs when an employee learns specific skills required for their job while performing the job itself. This type of human capital formation is primarily utilized by businesses to enhance the productivity of their employees. While vocational education and business education can also be utilized by businesses to enhance human capital, on-the-job training is the most common form of human capital formation in the business sector. Productivity enhancement is not a type of human capital formation, but rather an outcome of effective human capital formation.

The Type of Human Capital Formation That Occurs in the Business