Publication Date: February 1984
Publisher: Heritage Foundation (Washington, D.C.)
Author(s): Richard B. McKenzie
Research Area: Labor
The arguments that expanded federal spending to retrain displaced workers would net overall social benefits are unconvincing. The efficiency of such a proposal is doubtful because it appears that the market is already well equipped to handle the nation's retraining needs. Wages do adjust upward to reflect the training costs incurred by workers. To say that retraining costs are "high" is not to say that the market cannot adjust, especially inthe case of non-poor workers.