This paper identifies policy challenges to the skill formation process in Thailand. Specifically,
we examine whether the foundation of current policies help foster skill acquisition and
prepare our labor force well for heightened competition in the 21st century. Human capital is
a major source of competitiveness and growth. Better educated and more able citizens
contribute to civic affairs, crime reduction, and intergenerational transfers of skills. We view
skill formation as a life-long process and consider 3 major sources of learning: formal
schooling, labor market and families. We also draw on a wealth of literature and suggest a
comprehensive life-cycle framework for public policies to foster human capital accumulation.
Based on the choice of students, parents, trainees and firms, this framework aims to get the
incentives right through increased interaction between the labor market, formal education
institutions and families.