What is the difference between general training and firm-specific training? Why do women who anticipate workforce interruptions try to avoid the jobs that require firm-specific training? Why are firms reluctant to hire women for this type of jobs?
The correct answer and explanation is:
General training refers to the type of training that provides workers with skills applicable across a variety of firms or industries. It typically focuses on general knowledge, technical skills, or competencies that are not specific to one company’s operations. For example, learning how to operate software that is commonly used across many organizations is general training.
Firm-specific training, on the other hand, equips workers with skills and knowledge unique to a particular company or organization. This training focuses on the company’s culture, internal systems, processes, and specialized equipment. An example would be a company-specific software program or proprietary machinery that only one company uses.
Women who anticipate workforce interruptions, such as maternity leave or caregiving responsibilities, often try to avoid jobs that require firm-specific training because these jobs typically have a higher cost for the firm when an employee leaves. Firm-specific training is an investment made by the company, and if a worker leaves after receiving such training, the company loses that investment. Since women are statistically more likely to take career breaks for family reasons, they may avoid jobs where firms have invested in specific training, understanding that firms might be less inclined to hire or retain employees in these roles if they foresee potential interruptions.
Firms are often reluctant to hire women for jobs requiring firm-specific training for similar reasons. The company invests time and resources into the training process, and if a woman is likely to leave for maternity leave or other family-related reasons, the firm may be concerned about a lower return on that investment. Additionally, firms may have gender biases, perceiving women as more likely to leave or take breaks, even if this is not always true. These biases can lead to a reluctance in hiring women for positions that involve costly firm-specific training.