Stagnant earnings and rising inequality in the U.S. labor market reflect both a slowdown in the growth of worker skills and the growing matching of good-paying jobs to skilled workers. Improving the ties between colleges, workforce institutions and employers would help more workers gain the needed skills. Evaluaton evidence shows that job training programs linked to employers and good-paying jobs are often cost-effective. Helping more states develop such programs and systems would help raise worker earnings and reduce inequality.
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