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Subsidies and levies as policy instruments to encourage employer-provided training

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Document
Content Type:
Subsidies and levies as policy instruments to encourage employer-provided training
Language:

English

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english
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skpEng
Sources:

Information is gathered from other international organizations that promote skills development and the transition from education and training to work. The Interagency Group on Technical and Vocational Education and Training (IAG-TVET) was established in 2009 to share research findings, coordinate joint research endeavours, and improve collaboration among organizations working at the international and national levels.

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skpIntOrg
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international-organizations
Topics:

Financing of training

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Initial education and training and lifelong learning benefit individuals, employers and society as a whole. Economic principles dictate that the costs for services with public and private benefits should be shared between public and private funding, or else too little training will be provided or taken up. Effective mechanisms for financing skills development vary according to countries’ economic and political circumstances and the degree and level of social dialogue established.

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skpFinanT
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financing-training

Participation of employers' and workers' organizations

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The world of learning and the world of work are separate but linked. While one involves learning, the other produces goods and services. Neither can thrive without the other. Strong partnerships between government, employers and workers help ensure the relevance of training to the changing needs of enterprises and labour markets. 

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skpPSP
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participation-of-employers-and-workers-organizations
Knowledge Products:

Research papers

Working papers, reports, and other publications from international organizations, academic institutions and bilateral agencies. Research findings to stimulate informed debate on skills, employment and productivity issues. 

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skpRPS
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research-papers
Publication Date:
20 Mar 2013
OECD Education Working Papers, No. 80 This paper provides an overview of the available information concerning selected policy instruments intended to promote employer-provided training, including the stated rationale and objectives, the target groups and operational design as well as a at a summary of the evaluative evidence regarding their operation. The analysis focuses on policy instruments providing financial assistance or incentives, specifically, subsidies (including tax incentives and grants) and levy schemes that devote a least some share of their resources to continuing training. Training leave regulations are considered only to the extent that they can be treated as a form of subsidy or a levy scheme, depending on the main financing mechanism involved. Instruments that focus solely on improving the quality of training or enhancing transparency in the training market are not addressed. In addition to offering a description of different instruments, the paper discusses the strengths and weaknesses (or risks and opportunities, respectively) of different types of instrument or particular elements of instrument design. It also specifies principles of successful instrument design that have been put forth in the literature and concludes with some remarks regarding the choice of policies.
Subject Tags:

Financing training

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financing-training
Identifier
673

Lifelong learning

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lifelong-learning
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400

Vocational training

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vocational-training
Identifier
124
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