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Do Most Employers And Workers Underinvest In Training And Learning On The Job?, John H. Bishop
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"Many economists question the need for social intervention in training, arguing that the benefits accruing to employers and employees create sufficient incentive for private financing. Research findings indicate that in practice this means depending on employers because it is they who pay for the bulk of employee training, even when the skills being taught are useful at other firms. Yet in practice, private incentives for on-the-job learning and training do not currently generate broader results that are in the public interest. This chapter looks at the theoretical and empirical evidence of market failure in training provisions. It argues that the ...