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Does an employer training levy work? The incidence of and returns to adult vocational training in France and Britain

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  • Christine Greenhalgh

Abstract

We examine two different policy regimes towards continuing vocational training for the adult workforce: policy in France has been interventionist, using an employer training levy since the 1970s, whereas British policy has relied largely on individual initiatives for training investment by employers and workers. We begin with a review of the theory of vocational training, indicating why market failure and underprovision are the likely outcome and signalling types of corrective policy that might be adopted. We set up hypotheses about the likely impact of policy in France relative to Britain to provide a framework for evaluation. We present a detailed comparison of the two systems in observed training incidence and the returns to training captured by workers and employers, drawing on a wide range of econometric studies. We conclude with an assessment of the employer training levy in France and suggest ways it could be modified if adopted in Britain.

Suggested Citation

  • Christine Greenhalgh, 2002. "Does an employer training levy work? The incidence of and returns to adult vocational training in France and Britain," Fiscal Studies, Institute for Fiscal Studies, vol. 23(2), pages 223-263, September.
  • Handle: RePEc:ifs:fistud:v:23:y:2002:i:2:p:223-263
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    References listed on IDEAS

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    1. Chisari, Omar & Estache, Antonio & Romero, Carlos, 1999. "Winners and Losers from the Privatization and Regulation of Utilities: Lessons from a General Equilibrium Model of Argentina," World Bank Economic Review, World Bank Group, vol. 13(2), pages 357-378, May.
    2. Antonio Estache & Gines De Rus, 2000. "Privatization and Regulation of Transport Infrastructure : Guidelines for Policymakers and Regulators," World Bank Publications, The World Bank, number 15199.
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    Cited by:

    1. Konstantinos Angelopoulos & Andrea Benecchi & Jim Malley, 2017. "Can Subsidising Job-Related Training Reduce Inequality?," CESifo Working Paper Series 6605, CESifo Group Munich.
    2. Andrew Sharpe & James Gibson, 2005. "The Apprenticeship System in Canada: Trends and Issues," CSLS Research Reports 2005-04, Centre for the Study of Living Standards.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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