Strengthening Workplace Education Program Policies to Enable Low-Wage Workers' Advancement

Updates the 2007 brief "Strengthening State Policies to Increase the Education and Skills of Low-Wage Workers"; profiles programs that improve basic, literacy, and English language skills; and outlines issues for enhancing state policy and strategy

iKnow: information skills in the 21st Century workplace

The iKnow (Information and Knowledge at Work) project at The Open University (OU) set out to explore and articulate the information skills requirements of the 21st century workplace. Although some existing research had highlighted the costs of ineffective information searching in the workplace, there appeared to be little online material to remedy this. The project was run in three phases, which involved identifying the key competencies, developing some prototype ‘bite-size’ materials and piloting them for their effectiveness in a variety of workplaces. The results of the study show that participants not only perceived the skills as relevant and useful, but also found that the bite-size model made training easier to schedule into a working day. The project team found that these materials could potentially be an important link between informal and formal learning, of particular relevance in the current economic climate

Teacher education in a climate of change: the way forward

The Department for Employment and Learning (DEL) and the Department of Education (DE) launched a review of teacher education in 2003 at the first major teacher education conference to be held in 30 years... The purpose of the review was to ensure that the profession is best placed to cope with the changes facing the education sector in the coming years... This paper seeks to: establish the context within which decisions about teacher education have to be taken; argue the need for change; present the conclusions arising from the review; and make proposals about the future delivery of teacher education

Why do retail investors make costly mistakes? An experiment on mutual fund choice

There is mounting evidence that retail investors make predictable, costly investment mistakes, including underinvestment, naïve diversification, and payment of excessive fund fees. Over the past thirty-five years, however, participant-directed 401(k) plans have largely replaced professionally managed pension plans, requiring unsophisticated retail investors to navigate the financial markets themselves. Policy-makers have struggled with regulatory interventions designed to improve the quality of investment decisions without a clear understanding of the reasons for investor mistakes. Absent such an understanding, it is difficult to design effective regulatory responses. This article offers a first step in understanding the investor decision-making process. We use an internet-based experiment to disentangle possible explanations for inefficient investment decisions. The experiment employs a simplified construct of an employee’s allocation among the options in a retirement plan coupled with technology that enables us to collect data on the specific information that investors choose to view. In addition to collecting general information about the process by which investors choose among mutual fund options, we employ an experimental manipulation to test the effect of an instruction on the importance of mutual fund fees. Pairing this instruction with simplified fee disclosure allows us to distinguish between motivation-limits and cognition-limits as explanations for the widespread findings that investors ignore fees in their investment decisions. Our results offer partial but limited grounds for optimism. On the one hand, within our simplified experimental construct, our subjects allocated more money, on average, to higher-value funds. Furthermore, subjects who received the fees instruction paid closer attention to mutual fund fees and allocated their investments into funds with lower fees. On the other hand, the effects of even a blunt fees instruction were limited, and investors were unable to identify and avoid clearly inferior fund options. In addition, our results suggest that excessive, naïve diversification strategies are driving many investment decisions. Although our findings are preliminary, they suggest valuable avenues for future research and important implications for regulation of retail investing