Interest in collective skill formation systems has been high for a long time, but recent structural economic and societal developments have led commentators to question their viability. In particular, the shift towards a knowledge economy creates a number of challenges for these highly praised systems of vocational training. These challenges relate to the growing importance of knowledge intensive production in advanced economies and with the accelerated pace of change due to innovation and globalization. What is more, these issues are compounded by coinciding developments in growing inequality and the emergence of multicultural societies. Can collective skill formation systems adapt fast enough to the needs of the knowledge economy? Can they continue to be as successful as they have been in the past in integrating youth in the labour market? Will employers be willing to participate in the delivery of vocational training in this new context? In this book, a world class team of leading experts on collective skill formation systems provide a thorough discussion of these and other questions raised by the shift to a knowledge economy. The book argues that collective skill formation systems remain attractive for firms and governments. However, continuous and profound adjustments will be needed if they are to fulfil their objectives in terms of equity and efficiency.