Developing a Framework Theory for Assessing the Benefits of Careers Guidance.

Public expenditure decisions increasingly require demonstratable benefits from each area of expenditure. At the same time, investment in human capital represents a form of investment in which individuals typically bear considerable specific, as well as systematic, risks regarding future returns on their investment. This paper develops a framework in which the social benefits of increased expenditure on careers guidance can be assessed using the tools of economic analysis and decision theory. After examining these benefits from the viewpoint of risk management, the paper examines the quality of life measurement issues which are raised by career choice. It concludes with an examination of the wider social and macroeconomic benefits from improved labour market flexibility that investment in careers guidance may achieve.