This paper provides an overview of the available information concerning selected policy instruments
intended to promote employer-provided training, including the stated rationale and objectives, the target
groups and operational design as well as a at 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 that focus solely on improving the quality of training or enhancing
transparency in the training market are not addressed. In addition to offering a description of different
instruments, 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 specifies principles of
successful instrument design that have been put forth in the literature and concludes with some remarks
regarding the choice of policies.
Subsidies and Levies as Policy Instruments to Encourage Employer‑Provided Training
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