by F.R. Duplantier
The experience a person gains on the job is often worth far more than the wages he receives.
"Some commentators argue that unfair foreign competition and callous executives have destroyed the social contract between employers and employees," observes John Hood of the Heritage Foundation in the June issue of Policy Review. "Others say that inexorable economic and social trends, such as the Information Revolution, are enlarging the prospects for highly skilled workers while displacing those with less education." There is general agreement, however, "that America must raise the educational levels of its workers. But would-be reformers," says Hood, "often forget that the largest educational system in the United States is neither the public schools nor institutions of higher learning. It is the education and training workers receive from their employers or in the private marketplace."
Almost every workplace in America offers endless opportunities for "lifelong learning." All that's needed is the gumption to take advantage of them. "Workers learn new skills, information, and problem-solving strategies virtually every day, in formal courses or on the job," says Hood. "Motivated by competition and the search for greater value, many businesses try to raise productivity through training programs. In the long run, such efforts pay off in larger profits, better products, and higher wages." Hood reports that "about 50 million workers received some kind of formal training" in 1995, at a cost to their employers of more than $50 billion. Throw in another $300 billion in informal training, and you've got a sizable investment in the American worker.
This is a win-win situation for employers and employees. "Workers who become more skilled in their jobs are more productive," observes Hood. "Also, studies show that training can raise employee loyalty and reduce turnover, in part because workers often find their skills to be more valuable at the firm where they were acquired." College graduates who rest on their laurels often find themselves earning less than "workers without college degrees who nevertheless have obtained specific training for their jobs."
Of course, employees who lack a basic education and a decent work ethic are not likely to benefit no matter how much money is spent on them. "Despite this enormous investment in training, many workers have few or no marketable skills," says Hood. "The problem is one of wasted resources. Public schools spend a tremendous amount of tax money but often fail to prepare young people academically to benefit from training later on. Government-sponsored job-training programs have consistently posted mediocre returns on the billions of dollars in tax money spent."
John Hood argues that "federal and state subsidies encourage students to pursue post-secondary training in an inefficient manner. Federally guaranteed student loans and generous state subsidies entice students to enroll in colleges, but a surprisingly low percentage graduate. The time students waste in irrelevant (and often outdated) community-college and university classes," he suggests, "might be better spent finding an employer that teaches useful skills."
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