Training Funds and the Incidence of Training : The Case of Mauritius

Training funds are used to incentivize training in developing countries, but the funds are based on payroll taxes that lower the return to training. In the absence of training funds, larger, high-wage and more capital-intensive firms are the most likely to offer training unless they are liquidity co...

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Bibliographic Details
Main Authors:	Kuku, Oluyemisi, Orazem, Peter F., Rojid, Sawkut, Vodopivec, Milan
Format:	Journal Article
Language:	en_US
Published:	Taylor and Francis 2015
Subjects:	Training Firm-specific skills Training fund Cross-subsidy Tax
Online Access:	http://hdl.handle.net/10986/21610

id	okr-10986-21610
recordtype	oai_dc
spelling	okr-10986-216102021-04-23T14:04:03Z Training Funds and the Incidence of Training : The Case of Mauritius Kuku, Oluyemisi Orazem, Peter F. Rojid, Sawkut Vodopivec, Milan Training Firm-specific skills Training fund Cross-subsidy Tax Training funds are used to incentivize training in developing countries, but the funds are based on payroll taxes that lower the return to training. In the absence of training funds, larger, high-wage and more capital-intensive firms are the most likely to offer training unless they are liquidity constrained. If firms are not liquidity constrained, the fund could lower training investments. Using an administrative data set on the Mauritius training fund, we find that the firms most likely to train pay more in taxes than they gain in subsidies. The smallest firms receive more benefits than they pay in taxes. 2015-03-17T21:03:37Z 2015-03-17T21:03:37Z 2015-02-24 Journal Article Education Economics 0964-5292 http://hdl.handle.net/10986/21610 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Taylor and Francis Publications & Research Publications & Research :: Journal Article Africa Mauritius
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	Training Firm-specific skills Training fund Cross-subsidy Tax
spellingShingle	Training Firm-specific skills Training fund Cross-subsidy Tax Kuku, Oluyemisi Orazem, Peter F. Rojid, Sawkut Vodopivec, Milan Training Funds and the Incidence of Training : The Case of Mauritius
geographic_facet	Africa Mauritius
description	Training funds are used to incentivize training in developing countries, but the funds are based on payroll taxes that lower the return to training. In the absence of training funds, larger, high-wage and more capital-intensive firms are the most likely to offer training unless they are liquidity constrained. If firms are not liquidity constrained, the fund could lower training investments. Using an administrative data set on the Mauritius training fund, we find that the firms most likely to train pay more in taxes than they gain in subsidies. The smallest firms receive more benefits than they pay in taxes.
format	Journal Article
author	Kuku, Oluyemisi Orazem, Peter F. Rojid, Sawkut Vodopivec, Milan
author_facet	Kuku, Oluyemisi Orazem, Peter F. Rojid, Sawkut Vodopivec, Milan
author_sort	Kuku, Oluyemisi
title	Training Funds and the Incidence of Training : The Case of Mauritius
title_short	Training Funds and the Incidence of Training : The Case of Mauritius
title_full	Training Funds and the Incidence of Training : The Case of Mauritius
title_fullStr	Training Funds and the Incidence of Training : The Case of Mauritius
title_full_unstemmed	Training Funds and the Incidence of Training : The Case of Mauritius
title_sort	training funds and the incidence of training : the case of mauritius
publisher	Taylor and Francis
publishDate	2015
url	http://hdl.handle.net/10986/21610
_version_	1764448761797410816

Training Funds and the Incidence of Training : The Case of Mauritius

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