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Employer-Sponsored Training in Stabilisation and Growth Policy Perspectives

Author

Listed:
  • Håkanson, Christina

    (The Research Institute of Industrial Economics)

  • Johanson, Satu

    (PriceWaterhouseCoopers AB)

  • Mellander, Erik

    (Institute of Labour Market Policy Evaluation (IFAU))

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.

Suggested Citation

  • Håkanson, Christina & Johanson, Satu & Mellander, Erik, 2003. "Employer-Sponsored Training in Stabilisation and Growth Policy Perspectives," Working Paper Series 592, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0592
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    References listed on IDEAS

    as
    1. Daron Acemoglu & Jorn-Steffen Pischke, 1999. "The Structure of Wages and Investment in General Training," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 539-572, June.
    2. Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages 112-142, February.
    3. Eugenia Kazamaki Ottersten & Thomas Lindh Mellander, 1999. "Evaluating firm training, effects on performance and labour demand," Applied Economics Letters, Taylor & Francis Journals, vol. 6(7), pages 431-437.
    4. Michael J. Piore, 1968. "On-The-Job Training and Adjustment to Technological Change," Journal of Human Resources, University of Wisconsin Press, vol. 3(4), pages 435-449.
    5. Mellander, Erik & Savvidiou, Eleni & Gunnarsson, Gudmundur, 2001. "Is Human Capital the Key to the IT Productivity Paradox?," Working Paper Series 551, Research Institute of Industrial Economics.
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    7. repec:eme:rlepps:v:18:y:1999:i:1999:p:303-330 is not listed on IDEAS
    8. John M. Barron & Mark C. Berger & Dan A. Black, 1997. "On-the-Job Training," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ojt, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Training; Accounting System; Timing; Growth;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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