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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
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    6. 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.
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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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