Development Intermediaries and the Training of Low-Wage Workers

Lisa M. Lynch

in Emerging Labor Market Institutions for the Twenty-First Century

Published by University of Chicago Press

Published in print February 2005 | ISBN: 9780226261577
Published online February 2013 | e-ISBN: 9780226261812 | DOI:
Development Intermediaries and the Training of Low-Wage Workers

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During the latter half of the 1990s, the unemployment rate in the United States reached a thirty-year low, a major influx of former welfare recipients entered the labor market, and employers in the high-tech sector demanded immigration reform to import skilled labor in order to meet their hiring needs. The time seemed ripe for increased job training in the United States, yet in spite of increasing returns to education and training over the last twenty years and high skill needs, the United States still seems to invest much less in post-school training than many other advanced industrialized economies. This chapter examines how various labor market intermediaries have intervened in the creation of training programs for low-wage workers to address the so-called “skills gap” of the past two decades. It first summarizes what is known about the need for and supply of skills in the United States. It then presents some examples of how labor market intermediaries in the United States have tried to create a new training system for low-wage workers at the local and national level.

Keywords: training; skills gap; United States; low-wage workers; intermediaries; labor market

Chapter.  9331 words. 

Subjects: Public Economics

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