| Abstract: | Provision of continuing vocational training is subject to severalmarket failures: capital-market imperfections (credit constraints),risk arising from variability of future values of skills, mismatchof costs and returns owing to worker mobility, and general positiveexternalities of human capital. In the light of these marketimperfections we evaluate the contrasting French and Britishsystems of adult training. French policy is interventionistand includes an employer training levy. British policy has abandonedlevies and emphasizes individual initiatives by workers andemployers. Despite contrasting policies, the character of trainingprovision is similar in both countries, being mainly arrangedand financed by employers. Differences are that the French systemoffers both higher public subsidy and cost-sharing between trainingand non-training employers. Training provision is higher inFrance and occurs earlier in the working life-cycle. We concludeBritish policy could usefully reconsider employer levies forsolving training under-investment. |
