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Expert Network on Economics and Sociology of Education and Training (ENESET)

The financing of adult learning

Although adult learning is seen as underfunded, evidence shows high deadweight losses from subsidies and low returns on training, challenging assumptions of widespread underinvestment.

  • Report

Details

Publication date
31 January 2013
Authors
Directorate-General for Education, Youth, Sport and Culture | European Expert Network on Economics of Education (EENEE)
Geographical scope
  • European Union
Level of education focus
  • Adult education
  • Non-formal and informal learning
  • Vocational education and training (VET)
Thematic areas covered
  • Education-to-work transitions, education and labour market
  • Educational effectiveness and efficiency
  • Governance of education
  • Investment in education, economic impact of education
  • Lifelong learning
  • Monitoring and quality assurance
  • Skills development
  • Teachers and trainers

Description

This report challenges the widespread assumption that adult learning is systematically underfunded and in need of large-scale public subsidies. It evaluates various financing mechanisms—such as tax incentives, vouchers, and direct subsidies—concluding that these often have limited effects and are associated with high deadweight losses.

Evidence shows that private sector solutions, such as agreements between employers and employees or internal training contracts, may already provide sufficient incentives for investment in adult learning. Moreover, when properly measured, the returns to adult training tend to be modest.

The report recommends caution in expanding public funding and argues that current EU targets in this area lack strong empirical support. It calls for more rigorous evaluation before designing or scaling new financing instruments.

Authors

Hessel Oosterbeek

Cite as

Oosterbeek, H. (2014), The financing of adult learning, EENEE report.

Cover

Files

  • 31 JANUARY 2013
The financing of adult learning – Analytical report