By Organization for Economic Cooperation &

ISBN-10: 9264012508

ISBN-13: 9789264012509

ISBN-10: 9264012516

ISBN-13: 9789264012516

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Extra resources for Skills Upgrading: New Policy Perspectives (Local Economic and Employment Development)

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Risk Incid. Risk Incid. Risk Incid. Risk Incid. , 2004, p. 34. 3. Risk and incidence of low pay by tenure in selected OECD countries Less than 2 years Between 2 and 4 years Between 5 and 9 years More than 9 years Risk Incid. Risk Incid. Risk Incid. Risk Incid. , 2004, p. 34. 40 SKILLS UPGRADING: NEW POLICY PERSPECTIVES – ISBN 92-64-01250-8 – © OECD 2006 2. 1. Some definitions Lifelong learning Lifelong learning “embraces individual and social development of all kinds and in all formal and informal settings, including at home and in the community” (McKenzie and Wurzburg, 1998).

Local initiatives alone cannot fill the gap left by current policy orientations focused on integrating the weakest categories of workers into the labour market and providing lifelong learning for the other workers. Employment and training policies should encompass skills upgrading to avoid marginalisation of disadvantaged workers on the labour market, to retain low-skilled workers in jobs, and to help them progress through acquiring specific competences currently in demand. Skills upgrading as a policy priority would serve to complement the current government agenda on both competitiveness and social cohesion.

While deadweight losses tend to be high in large companies, rigid eligibility criteria and high administrative costs do in some instances deter SMEs from considering these subsidies (OECD, 2005a). Moreover, it is difficult to know what degree of wage compensation will convince the employer who is in principle not interested in training for her/his employees. Anecdotal evidence from the United States suggests that employers are agreeing to contribute up to 50% of the wage bill, with the employee “contributing” by accepting to forego the other half of their salary.

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Skills Upgrading: New Policy Perspectives (Local Economic and Employment Development) by Organization for Economic Cooperation &


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