Title

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

Campus Units

Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

2016

Journal or Book Title

Education Economics

Volume

24

Issue

3

First Page or Article ID Number

280

Last Page

299

DOI

10.1080/09645292.2015.1009418

Abstract

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.

JEL Classification

M53, O15, O2, O55

Comments

This is a working paper of an article from Education Economics 24 (2016): 280, doi: 10.1080/09645292.2015.1009418.