Financing Skills for Work in Post-2015: Mobilizing the Private Sector

Abstract

Training levies are an important tool for providing a pool of funding which can contribute to the advancement of human capital. The potential of this type of fiscal instrument is especially important for countries that have unstable public budgets. The review of the existing literature has pointed out that the vast majority of the research work undertaken has followed a qualitative approach. This is because of a lack of the statistical data required to conduct empirical analysis. In order to contribute to the existing body of knowledge, we propose a conceptual framework for calculating the amount of revenue which could potentially be raised by a training levy. This methodology can be applied to forecast the amount of revenue that could be raised by means of a training levy. However, there are other factors that could influence the final outcome achieved by the relevant levy, such as the economic and institutional context and the general conditions of the labor market.