Subsidies and Levies as Policy Instruments to Encourage Employer-Provided Training

This paper presents evidence of policy instruments intended to promote employer-provided training. This includes the stated rationale and objectives of the training, the target groups and operational design. It also presents a summary of the evaluative evidence regarding their operation. The analysis focuses on policy instruments providing financial assistance or incentives, specifically, subsidies (including tax incentives and grants) and levy schemes that devote a least some share of their resources to continuing training. Training leave regulations are considered only to the extent that they can be treated as a form of subsidy or a levy scheme, depending on the main financing mechanism involved. Instruments are only concerned with improving the quality of training or enhancing transparency in the training market are not addressed in this report. The paper discusses the strengths and weaknesses (or risks and opportunities, respectively) of different types of instrument or particular elements of instrument design. It also details successful instrument design.

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