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Public Subsidies and Private Training [microform] / Roger J. Vaughan
Bib ID 5512372
Format BookBook, MicroformMicroform, OnlineOnline
Author
Vaughan, Roger J
 
Online Versions
Description [Washington, D.C.] : Distributed by ERIC Clearinghouse, 1989 
19 p. 
Summary

Overall, federal and state tax codes treat employer investments in human capital more favorably than investment in physical plant and equipment. The most important advantage is that training expenditures can be dispensed immediately, rather than depreciated over time, possibly resulting in a subsidy of 33 percent. In addition, employers who use public institutions to train their workers will rarely have to pay the full cost of these services. Employer-provided training is important for the overall growth of the economy and an important way in which many people acquire more marketable skills. However, there is no strong case for further subsidies to encourage employers to invest more in the work force. The evidence of overall underinvestment in the United States does not imply that there is underinvestment in human capital acquired on the job. Employers can use contracts to capture the benefits of the training for which they pay. However, employer-provided training rarely compensates for poor education--rather, it is concentrated on employees who are well-educated. Many useful mechanisms for subsidizing employer training of the work force are in place. Most public training institutions are already developing programs to train workers for local businesses and to train economically disadvantaged workers. Because employer training is complementary to basic education, the best way to encourage employers to invest more in the work force is to reduce the number of high school dropouts and to improve the quality of basic education. (Author/KC)

Notes

Sponsoring Agency: National Assessment of Vocational Education (ED), Washington, DC.

ERIC Note: Paper presented at the Conference on Employer-Sponsored Training (Alexandria, VA, December 1-2, 1988). Blurred type may affect legibility. For related documents, see ED 283 020, ED 290 881, ED 299 412, ED 297 150, CE 053 752-774, and CE 053 783-797.

May also be available online. Address as at 14/8/18: https://eric.ed.gov/

Reproduction Microfiche. [Washington D.C.]: ERIC Clearinghouse microfiches : positive. 
Subjects Dropout Prevention.  |  Education Work Relationship.  |  Employer Attitudes.  |  Employer Employee Relationship.  |  Employment Practices.  |  Fringe Benefits.  |  Industrial Training.  |  Job Training.  |  Labor Economics.  |  Labor Force Development.  |  Postsecondary Education.  |  Staff Development.
Form/genre Information Analyses.  |  Speeches/Meeting Papers.
Other authors/contributors Columbia Univ., New York, NY. Inst. on Education and the Economy
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