Wage rates and earnings give misleading signals to public and private policymakers as to the benefits of certain kinds of education and training investments. These misleading signals result from the fact that (1) workers and employers prefer employment contracts that either do not recognize or only partially recognize differences in productivity…

A four-year study examined the nature and policy implications of school and employer practices to help youth prepare for employment. Data for the study were compiled from a telephone survey of 3,500 employers; a mail survey of 750 employers from across the country; 493 employers, 71 teachers, and 1,565 students from 5 major U.S. cities who…