This book, which is designed for undergraduate-level students in economics and industrial relations, attempts to synthesize the literature in the field of training for employment in Western Europe and the United States. In part 1, the principles of human capital theory are used to explain many labor market phenomena in terms of rational choices made by individuals, households, and businesses. A range of possible market failures possibly requiring government intervention are listed, selected alternative economic theories of training are reviewed, and the political context of training policies is discussed. Part 2 presents case studies of the education and training systems of the United States, United Kingdom, Germany, and France and compares the U.S. and Western European education and training systems to the Japanese system. Examined in part 3 are the following issues: the relationship between education and work, training for the unemployed, and women and training. Concluding the book is a brief review of the following topics: productivity, skills, and qualifications; training and social policy; human capital theory and the individual; and governments, training, and education. Contains 64 figures/tables and 317 references.) (MN)