Number of pages
SourceDiritto Delle Relazioni Industriali, 17, 1, (2007), pp. 21-36
Article / Letter to editor
Display more detailsDisplay less details
Economische theorie en economisch beleid
Diritto Delle Relazioni Industriali
SubjectNijmegen Centre for Economics
In this paper the promotion of education and training, i.e. workers’ employability is examined in theoretical and practical terms. The author highlights the phenomenon of under-investment in general and firm-specific human capital, and argues that training is a risky investment. Due to market failures – characterized as the prisoner’s dilemma, free-riding, hold up and liquidity constraints – the vocational training of adult employees fails to reach the optimal level. It is argued that cooperation and agreements between the social partners and the extension of collective labour agreements provide solutions to these market failures. In decision-making and accounting practice not only private enterprises, but also national governments treat education and training as consumption goods and not as investment goods. Some practical policy solutions are suggested to treat education and training more like real investments and to bridge the gap between human capital theory and accounting practice, and to improve the quality of decision-making relating to education and training.
This item appears in the following Collection(s)
- Academic publications 
- Nijmegen School of Management 
Upload full text
Use your RU credentials (u/z-number and password) to log in with SURFconext to upload a file for processing by the repository team.