Recovery not fast enough? Notes on speeding up

Economy-wide losses occur due to sluggish factor adjustment: these notes focus on the role of training in economic restructuring, and provide a novel approach to assess the value of human resources management policies. As training raises mobility it speeds up reallocation, also with favourable distributional impacts; it is argued that these effects reveal the true value of training. Numerical exercises show that policies towards training incentives and preparedness can make a significant contribution towards faster economic growth and lower long term losses from sluggish adjustment. Also, the relevance of improving the too-frequent poor effectiveness of training programs is made apparent.