Welfare Reform on the Web - January 2001: Education - UK - training

THE COMPARATIVE EFFECTIVENESS OF DIFFERENT DELIVERY FRAMEWORKS FOR TRAINING THE UNEMPLOYED

Gray

Journal of Education and Work, vol. 13, 2000, p. 307-325.

Case studies are used to illustrate serious perverse incentives arising from the system of output related funding of vocational training used in the UK. It leads to creaming, and encourages the curtailment of skills training in order to secure an immediate job. This quest in turn risks transforming on-the-job training into a work trial rather than an aid to skills upgrading, with the risk that re-entry into work may not be lasting.