On the Incidence of Employment Subsidies to Vocational Training
The present paper analyses employment subsidies to vocational training under union wage bargaining. The analysis includes an investigation of the consequences of financing the subsidy by a levy on employment, which is the typical way of financing these types of subsidies in many countries. The paper demonstrates high incidence rates of subsidies to vocational training under standard assumptions about the preference structure of the union. The financing scheme appears to counteract the purpose of the subsidy.
|Date of creation:||Feb 2010|
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- James M. Malcomson & James W. Maw & Barry McCormick, 2002.
"General Training by Firms, Apprentice Contracts, and Public Policy,"
CESifo Working Paper Series
696, CESifo Group Munich.
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"Why Do Firms Train? Theory and Evidence,"
96-7, Massachusetts Institute of Technology (MIT), Department of Economics.
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"Training and Union Wages,"
The Review of Economics and Statistics,
MIT Press, vol. 91(2), pages 363-376, May.
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CEPR Discussion Papers
2099, C.E.P.R. Discussion Papers.
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- Farber, Henry S, 1978. "Individual Preferences and Union Wage Determination: The Case of the United Mine Workers," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 923-942, October.
- Calmfors, Lars & Lang, Harald, 1995. "Macroeconomic Effects of Active Labour Market Programmes in a Union Wage-Setting Model," Economic Journal, Royal Economic Society, vol. 105(430), pages 601-619, May.
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