Training finance

Following a schematic account of training-finance flows in conventional training markets, an account of innovative financing mechanisms is provided, which have been adopted in many national training systems. These mechanisms aim both at correcting shortcomings of conventional training finance systems in terms of meeting labor-market needs and containing training costs and also to better meet the challenges of competition, technological change, and globalization. Directions of change include a greater diversification of funding sources for skills development (including cost sharing and training taxes), encouragement of more and higher-quality enterprise training, the development of private training markets, and increased competition between public and private training providers.