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Originally Posted by Happy Days  Isn't that the point of a free market - prices get to a natural equilibrium? Therefore, if the employee has skills that are valuable then they should be paid for at a high rate than those of employees whose skills are in adequate supply. |
Unless it is specific training (i.e. training that only increases the productivity of the worker in his/her current employment), there is no means that the employer can guarantee that- despite the expense of training- it will receive a return from the human capital investment. This will ensure that there is underprovision of general training (i.e. training that increases the productivity of the worker in current and other employment). The free market will assuredly fail.