Market failure in skills

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Author: Keep, Ewart

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Sector Skills Development Agency (Great Britain) (SSDA)


The concept of market failure has been key to the development of UK vocational education and training (VET) policy at national level over the last two decades. It is the chief reason adduced for greater levels of government intervention within, and public subsidy for, the VET system. Policy makers argue that market failures have led UK employers and individuals to under-invest in skills, to the detriment of our long-term economic prospects. Policy responses to market failure include the expansion of post-compulsory education, attempts to demonstrate that investment in skills leads to...  [+] Show more

Subjects: Labour market; Skills and knowledge; Policy; Finance; Governance

Keywords: Policy formation; Government role; Investment; Education and training system

Geographic subjects: Europe; Great Britain

Published: Wath-upon-Dearne, England: SSDA, 2006

Physical description: 14 p.

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Series: SSDA catalyst

Statement of responsibility: Ewart Keep

SSDA Catalysts are a series of short papers designed to provoke debate on crucial skill and productivity issues. Each issue summarises the implications of influential research and recommends next steps for policy or business practitioners, lines of policy development and areas for further research.

Resource type: Paper

Document number: TD/TNC 89.305

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