Employer-Sponsored Training in Stabilisation and Growth Policy Perspectives

Christina Håkanson (), Satu Johanson and Erik Mellander ()
Additional contact information
Christina Håkanson: The Research Institute of Industrial Economics, Postal: P.O. Box 55665, SE-102 15 Stockholm, Sweden
Satu Johanson: PriceWaterhouseCoopers AB, Postal: Torsgatan 21, SE-113 97 Stockholm, Sweden
Erik Mellander: Institute of Labour Market Policy Evaluation (IFAU), Postal: P.O. Box 513, SE-751 20 Uppsala, Sweden

No 592, Working Paper Series from Research Institute of Industrial Economics

Abstract: In Europe, accounting standards prevent larger expenditures on employer-sponsored training from being treated as investments. Using Sweden as example, we discuss two consequences for training. First, the timing: training will be conducted when income is large enough for training costs to be deducted without loss. This is more often possible during booms than recessions, providing a stabilisation policy dimension to training. Second, the volume: the training opportunity cost (foregone production) is largest during booms. Hence, training tends to be smaller than if conducted during downturns, possibly limiting growth.We formulate two proposals that can make training more counter-cyclical and increase the amount of training.

Keywords: Training; Accounting System; Timing; Growth (search for similar items in EconPapers)
JEL-codes: D21 E32 H25 M41 M53 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2003-03-10
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ifn.se/Wfiles/wp/WP592.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0592

Access Statistics for this paper

More papers in Working Paper Series from Research Institute of Industrial Economics Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Elisabeth Gustafsson ().