Are skills the problem? Reforming the education and training system in the United States

Skill formation is a life cycle process. It begins in the womb and continues on in the workplace. Education policy is only one aspect of a successful skill formation policy, and not necessarily the most important one. —James Heckman and Dimitriy Masterov (2005) As the larger return to education and skill is likely the sin-gle greatest source of the long-term increase in inequality, policies that boost our national investment in education and training can help reduce inequality while expanding eco-nomic opportunity.... The economically relevant concept of education is much broader than the traditional course of schooling from kindergarten through high school and into college. Indeed, substantial economic benefi ts may result from any form of training that helps individuals acquire eco-nomically and socially useful skills, including not only K-12 education, college, and graduate work but also on-the-job training, course work at community colleges and vocational schools, extension courses, on-line education, and training in fi nancial literacy