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This book examines the main policies available to government in dealing with the problem of high unemployment. It thereby gives policy makers and academics a convenient basis for making policy decisions in this area. The book attempts to evaluate the strengths and weaknesses of a wide range of policy options including demand management versus supply-side policy, subsidizing employment and training, restructuring labor market regulations, and reforming the welfare state. It also investigates the political process whereby unemployment policy decisions are made.

In recent years, technological change, unemployment and industrial restructuring have highlighted training and the acquisition of skills as a policy issue. Throughout the industrialized world there is widespread concern that employees are insufficiently skilled. This deficiency can have serious economic consequences, reflected in excessive unemployment, meager growth, impeded competitiveness, excessive wages, insufficient innovation, and deficient product quality. This volume, from the Centre for Economic Policy Research, provides a systematic account of all the major market failures in the...