Learning Investment Equal to Capital Investment? Increasing the Investment in Human Resources by Treating Investment in Learning and Capital Investment on an Equal Basis: (Im)possibilities and Challenges

Abstract

Given the rapid changes in economies, labour organisations and production processes and technologies, investment in training and in developing human resources becomes more important than ever. One of the core issues in the present debates, however, concerns the issue of the funding. The increasing pressure on public funds clearly delineates that expanding investments should not be expected from this side. Governments are already seeking alternative funding mechanisms for education to decrease costs and increase individual responsibility for one's own human resources. An increased investment should therefore come from enterprises and individuals. Disparities in investment between different categories of enterprises and in participation between different groups of (un)employed indicate, however, that there are still market imperfections. This raises the issue of the adequacy of existing instruments for stimulating investment in human resources and actually raising the level of investment.