Should Firms be Required to Pay for Vocational Training?

Margaret Stevens ()

Economics Papers from Economics Group, Nuffield College, University of Oxford

Abstract: This paper constructs a model of a training market affected by both problems, and examines the rationale for training levy schemes, intended to make firms increase investment in vocational training. It is shown that regulating firms, or equivalently financing a subsidy through taxation of profits, can achieve a Pareto improvement irrespective of the cause of the under-investment. However, when the levy is assessed as a proportion of wages the effect is to address capital market imperfections only.

Keywords: LABOUR MARKET; TRAINING PROGRAMMES (search for similar items in EconPapers)
JEL-codes: J24 (search for similar items in EconPapers)
Pages: 39 pages
Date: 1999
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Should Firms Be Required to Pay for Vocational Training? (2001)
Working Paper: Should Firms be Required to Pay for Vocational Training? (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:nuf:econwp:1999-w4

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