ABSTRACT
The basic concept of human capital can be found even in Adam Smith's The Wealth of Nations (1776), way back into the 18th century. Theoretical concepts such as education as investment, rate of return to education, earnings function, on-the-job training, and general and specific training have been developed around their research in labour economics. The concept of educational investment would suggest that investment may continue into workplace by learning through working or on-the-job training (OJT). Wage profiles are generally upward sloping but decline towards the end. Wage profiles are higher for higher educational achievers throughout the age, which is interpreted as a result of higher level of educational investment before working life starts. Female wage profiles tend to be lower than the male counterparts. Unlike educational investment, where the direct cost is covered by the student, the burden of OJT cost may fall on the employee or the employer, depending on the nature of OJT.
