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Chapter 19: Asymmetric Information |
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Students at Henry Ford Community College in Dearborn, Michigan are guaranteed. A firm that hires a graduate from one of Henry Ford's vocational programs and discovers that he or she lacks the necessary skills can send that worker back to for retraining. This idea has spread to schools in New Jersey, Pennsylvania, Illinois, and Texas.
In the first eight years of the Henry Ford program, only one student returned for more classes. Some observers maintain that the guarantee motivates the school to stay on top of its program and keep it current with industry practices. But critics wonder how many people know about the guarantee and hence question whether it has any effect.
McLarin, Kimberly, "If a Graduate Fails, Return to Sender," New York Times, November 26, 1994:9; www.henryford.cc.mi.us/about_us/guarantee.asp; www.capitol-college.edu/aboutcapitol/guarantee/index.shtml.
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