Skip to Main Navigation

Training funds and the incidence of training : the case of Mauritius (English)

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 dataset 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.

Details

  • Author

    Kuku, Oluyemisi, Orazem, Peter F., Rojid,Sawkut

  • Document Date

    2015/01/01

  • Document Type

    Journal Article

  • Report Number

    100252

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Mauritius,

  • Region

    Africa,

  • Disclosure Date

    2015/10/19

  • Disclosure Status

    Disclosed

  • Doc Name

    Training funds and the incidence of training : the case of Mauritius

  • Keywords

    active labor market program;incidence of training;returns to scale;tax on wage;efficient resource allocation;cost of training;firm size;labor market rigidity;free rider problem;average tax rate;negative incentive effect;improving resource allocation;estimation of equation;Labor market rigidities;private training institution;goodness of fit;measure output;long term relationships;high opportunity cost;Access to Electricity;economies of scale;access to financing;human resource development;department of economics;return to investment;assessment of outcome;cost of labor;liquidity constraint;Wage Bill;in-house training;tax levy;market failure;base wage;largest firms;firm training;production function;net return;worker mobility;labor productivity;trained worker;government training;payroll tax;measurement error;classroom training;reimbursement rates;worker productivity;asymmetric information;informal training;continuous measure;production process;human capital;spillover benefit;high wage;net effect;stated objective;administrative datum;cross subsidization;present value;noncommercial purposes;retail trade;cost advantage;small fraction;tax subsidy;capital asset;total employment;plant size;efficiency gain;labor turnover;standard for method;scale economy;wage level;labour market;comparative advantage;job growth;business growth;capital intensity;employment measure;conditional effect;job skill;Social Protection;transition country;transition countries;scarce resource;coefficient estimate;investment measure;noisy train;individual variable;constant term;total compensation;negative value;exogenous variable;short supply;targeted training;pool resource;government subsidy;graduate program;information sector;public fund;employment growth;intensive training;endogenous variable;log wage;size distribution;outcome measure;account data;firm growth;labor mobility;grant program;increasing return;explanatory variable;collect tax;national training;small island;future return;free-rider problem;decreasing return;increasing costs;probit equation;public good;marginal product;wage increase;standard deviation;wage gap;lower training;average cost;index function;small sample;input cost;information asymmetry;broad participation;political instability;overseas training;paid worker;unemployment benefit;technology sector;government use;increase productivity;social objective;copyright owner;lifelong learning;

Downloads

COMPLETE REPORT

Official version of document (may contain signatures, etc)

  • Official PDF
  • TXT*
  • Total Downloads** :
  • Download Stats
  • *The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.

Citation

Kuku, Oluyemisi Orazem, Peter F. Rojid,Sawkut

Training funds and the incidence of training : the case of Mauritius (English). Author accepted manuscript Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/173251467987848440/Training-funds-and-the-incidence-of-training-the-case-of-Mauritius