Working Paper 33
Perspectives on skill shortages
Abstract
The topic of skill shortages has reemerged as an important issue with calls for increased levels of government intervention to alleviate this problem. In order for intervention to be successful it is important that there is some understanding of the economics of skill shortages. This document aims to provide a brief outline of the economics of skill shortages as well as evaluating the effects that different responses aimed at alleviating such shortages may have. It is shown that training is only one of many possible responses and, in the case of Queensland, the available data suggests that options beyond increases in the level of publicly funded training may need to be considered to overcome current shortages.
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