Training policy in the UK has largely been the responsibility of the firm in respective industries. The result was market failure and, as a result, no optimum amount of training has been provided.

Question

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In the UK, the responsibility for training has traditionally been left to firms within industries, leading to market failure due to underinvestment in training. This is because individual firms often avoid investing in general training due to the fear that employees will leave after being trained, benefiting competitors. This results in a suboptimal level of training provision across the industry.

Training Policy in the UK Has Largely Been the Responsibility