On the Incidence of Employment Subsidies to Vocational Training

TY - UNPB

T1 - On the Incidence of Employment Subsidies to Vocational Training

AU - Albæk, Karsten

PY - 2010

Y1 - 2010

N2 - 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.

AB - 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.

M3 - Working paper

BT - On the Incidence of Employment Subsidies to Vocational Training

PB - Department of Economics, University of Copenhagen

ER -