Public policy, training and skill formation: challenging some current myths: a briefing paper

This paper is concerned to challenge two popular myths that are often used to inform public policy in the field of training and skill formation. The first of these is that training is always good and the more employers engage in it the better it is for the economy in terms of productivity, profitability and economic growth. It follows from this that public policy should therefore be aimed at incentivising and encouraging employers to continue to upskill their employees. The second myth is that small firms engage less in training and skill formation than larger firms and that formal training is better than informal training. Public policy should therefore be concerned with increasing [small and medium enterprises'] SMEs' investment in formal training. In challenging these ideas, this paper draws on the research conducted over a 15 year period at the Centre for Labour Market Studies, University of Leicester. That research has shaped the ideas presented here but this briefing also draws on a wide range of research undertaken by leading academics in the field.

Published summary reprinted by permission of the copyright owner.

The two recent papers on which this briefing is based are indexed at TD/TNC 87.125 and TD/TNC 87.546. Show less