Economists are aware of the importance of human capital in the process of development, whereas policy makers are only now exploring its implications, pressed by demands for more jobs and higher incomes. Recent research in the dynamics of labor markets illustrates how the results can help shape education and training policy in the United States. For nearly 2 decades, the body of research stressing the importance of human capital on growth and development has grown. Economic policy debates focus on investing human capital both as a way to encourage overall economic growth and as a way to expand opportunities for the economically disadvantaged. Studies have focused on how training acquired from employers affects the work experience of employees and other work history factors as well. Although this body of research necessarily identifies general relationships, its findings help policy makers wrestling with three policy questions: What are the effects of employer-sponsored training? Do employers invest enough in employee training? and How will the accelerating pace of technological change affect the need for employer-sponsored training and for complementary investments in education? (An appendix lists data sources. A list of 32 references is provided.) (NLA)