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The costs and benefits of training for companies

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  • Ludger Wößmann

Abstract

The number of the training places offered by companies in Germany has clearly fallen behind demand in the past two years. This has led in recent months to demands for a training levy and to corresponding draft legislation by the SPD delegation in the Bundestag. Such demands are politically attractive. but it is often overlooked that there are reasons for offering fewer training places. In this article the possible underlying causes for the shortage of training places are analysed. These presumably lie in the concrete worsening of the cost-benefit relationship of training facilities for the companies and in the generally poor prospects for the economy. Both can only be changed by an improvement in the general conditions for a “knowledge society”; a training levy would only worsen the situation.

Suggested Citation

  • Ludger Wößmann, 2004. "The costs and benefits of training for companies," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 57(06), pages 21-24, March.
    • Handle: RePEc:ces:ifosdt:v:57:y:2004:i:06:p:21-24
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    References listed on IDEAS

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    1. 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.
    2. Lisa M. Lynch, 1994. "Training and the Private Sector: International Comparisons," NBER Books, National Bureau of Economic Research, Inc, number lync94-1, March.
    3. Lynch, Lisa M. (ed.), 1994. "Training and the Private Sector," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226498102, December.
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    Cited by:

    1. Herbert Hofmann & Christian Holzner & Sonja Munz, 2004. "The draft training protection law: Effects and side effects," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 57(09), pages 18-22, May.
    2. Ludger Wößmann, 2008. "Efficiency and equity of European education and training policies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(2), pages 199-230, April.
    3. Oskamp, Frank & Snower, Dennis J., 2007. "Interactions between employment and training policies," Kiel Working Papers 1389, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • L00 - Industrial Organization - - General - - - General

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