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Employer-sponsored training in stabilisation and growth policy perspectives

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Author Info

  • Håkanson, Christina

    ()
    (Research Institute of Industrial Economics (IUI))

  • Johanson, Satu

    (PricewaterhouseCoopers AB)

  • Mellander, Erik

    ()
    (IFAU - Institute for Labour Market Policy Evaluation)

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    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.

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    Bibliographic Info

    Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2003:8.

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    Length: 37 pages
    Date of creation: 14 Apr 2003
    Date of revision:
    Handle: RePEc:hhs:ifauwp:2003_008

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    Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
    Phone: (+46) 18 - 471 70 70
    Fax: (+46) 18 - 471 70 71
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    Web page: http://www.ifau.se/
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    Related research

    Keywords: Employer-sponsored training; accounting standards;

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    References

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    1. James Heckman & Salvador Navarro-Lozano, 2004. "Using Matching, Instrumental Variables, and Control Functions to Estimate Economic Choice Models," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 30-57, February.
    2. Peter Fredriksson & Per Johansson, 2003. "Program Evaluation and Random Program Starts," CESifo Working Paper Series 844, CESifo Group Munich.
    3. Fredriksson, Peter & Johansson, Per, 2003. "Employment, mobility, and active labor market programs," Working Paper Series 2003:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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