Canadian Council on Learning | Conseil Canadien sur l'Apprentissage

Question Scans

Question 27: How can government structure an employer tax credit to assist in increasing the number of skilled workers in particular industries or occupations (e.g. construction trades and/or emerging industries)?

Overview

This question scan actually consists of two sub-questions:

1. What are elements of equitable and cost-effective tax credit models that could be successfully adopted in BC?
2. What types of tax incentives for employers and employees encourage training specifically Trades training?

Searching five academic databases and 17 research or industry websites resulted in the capture of 20 relevant studies; four of which were in the Canadian context while eight focused on the United States and the other eight mainly on Western Europe.

Although many countries utilize some form of training tax incentive for employers, there is limited empirical research on the issue. The topic of tax credits, incentives or levies appears to be addressed most often in the form of opinion and position papers. This question scan provides a summary of key research articles that appear to include analysis that extends beyond simple opinion and address the two sub-questions of this Scan.

Additionally, key reports from non-academic sources addressing the initial question are also summarized. These articles tend to identify possible or existing models of employer tax incentive initiatives.

The limited literature devoted to analyzing the structure and effectiveness of tax credit models suggests that there is not enough research in general, nor more specifically evidence-based research, to warrant a further more comprehensive systematic review of evidence.

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