ABSTRACT
The importance of investment in human skills for economic performance has been recognised in economic analysis especially since the work on human capital theory notably by work at Chicago University.1 This chapter examines some of the key economic issues involved in measuring and explaining the process of human capital acquisition. The chapter then examines the main human capital issues in the United Kingdom and the implications for economic performance. The policy focus will be on establishing some areas where the United Kingdom appears to be lagging behind and where there is good reason to believe this will ultimately diminish the chances of competing and growing as fast as other comparable countries.
