Chapter 6
Human capital theory refers to individual characteristics (such as school, training, and
experience) that contribute to productivity.
One of the central community-development issues related to human capital is the relationship
between worker skills and job opportunities. In many communities there exists a skills
There is increasing interest in the role of social networks in support of workforce development.
The primary focus of most workforce development activities is with support for unemployed
and dislocated workers. But there is a wide range of activities that are directed at the general
population today. Workforce networks play several functions: (1) they provide information
about job openings and the skills required for these jobs; (2) they reduce floundering—the
center model. Local organizations support a large employer providing training to employers of
other firms (e.g., Portage County Business Council). A peer-to-peer training network provides a
system of training through several institutions, such as the cluster model of the Wisconsin
Plastics Valley Initiative.
To evaluate the impact of workforce development networks on job training efforts, we can look
Discussion Questions
Ch. 6
1. How much do you think space/geography limits economic opportunities in your community?
What types of jobs are available in poorer neighborhoods? Is there adequate public
transportation for workers who are willing to work in other areas of the community?