EDU EDPC CERI 2008 3,TABLE OF CONTENTS, COSTS AND BENEFITS IN VOCATIONAL EDUCATION AND TRAINING 3. Tentative conclusion 3,Introduction 5,Context affects VET costs and benefits 5. Methodological limitations 5, Costs associated with vocational education and training 6. Defining the costs of VET 6,Who pays for VET 6,Forms of government intervention 7. Employer engagement in VET 8,Individual student contributions 9. Benefits associated with vocational education and training 10. Defining the benefits of VET 10,Determinants of VET benefits 10. Employer perspective 11,Individual returns to VET 12. REFERENCES 15,EDU EDPC CERI 2008 3, COSTS AND BENEFITS IN VOCATIONAL EDUCATION AND TRAINING. Tentative conclusion, The evidence gathered in this VET cost benefit literature review leads to the following. preliminary conclusions that will be used to inform subsequent research. 1 An aggregate cost benefit analysis or general conclusions applicable to all OECD countries are. hardly feasible for substantive and methodological reasons. VET systems their definition and forms of provision vary substantially across countries. Lack of standardized approach to data collection limits comparability missing evidence. 2 Understanding the determinants of VET costs and benefits is as important as knowing the costs. and benefits themselves, Determinants include Labour market regulations influence of trade unions nature of. demand for skills industry sector or occupation types of VET provision general versus. specific training, Example salaries of Swiss trainees are higher than those of their German counterparts but. only Swiss firms reap net benefits reason unlike Germany the flexible labour market in. Switzerland does not inhibit turnover therefore Swiss firms have to make sure trainees are. productive, 3 Various direct and indirect costs to different stakeholders have to be taken into account. School based VET Workplace training,Individual Student fees Accept lower wages. Charges for material equipment Opportunity costs forgone earnings as unskilled worker. Employer Paid time off for staff trainees Pay wages and labour costs higher than productivity. Financial support for staff trainees Mistakes by inexperienced trainees wasted resources and. time of experienced workers, In house training courses material special clothing. teacher salary administration, State Funding of education institutions Subsidies to training firms. Scholarships vouchers grants and Financial concessions to employers tax allowances. EDU EDPC CERI 2008 3, 4 An assessment of VET as investment should consider both short and long term benefits. While costs are typically expected up front benefits might arise at different points in time. Benefits may be difficult to quantify and hard to disentangle from other variables affecting. performance and productivity,Individual Employer Society. Short term Employment chances Higher productivity from well Saved expenses for social. benefits Earning levels trained workforce benefits unemployment as. Saved costs from recruiting consequence of failed,Work satisfaction. external skilled workers incl transition from education to. Drop out less likely from work,time for integration and risk of. vocational than general,hiring a person not known to the. courses US data, Long term Flexibility and mobility Supply benefits e g image Externalities from. benefits Lifelong learning more likely improvement productivity gain due to better. to receive training and Less turnover no need for re education. upgrade skills later in life training of new workers Increase in tax income from. higher earnings, VET students abilities differ systematically from academic students what is the right counterfactual. 5 The question Is it worthwhile to invest in VET remains open at this stage. VET is costly compared to general education, However blue collar workers i e VET graduates are still needed in today s economies. A more suitable question could be How can the provision of VET be made most cost effective. This general question translates into concrete guiding questions for further analytical work on VET. and country visits such as,Who should pay for VET,Where and how should VET be provided. Can context variables determining the cost benefit relationship be influenced. EDU EDPC CERI 2008 3,Introduction, 1 This paper has been prepared as part of the analytical phase of the OECD policy review on. vocational education and training VET Its purpose is to identify the different costs and benefits involved. in the provision of initial VET1 and the difficulties involved in assessing them from a comparative point of. view At this stage the paper is provisional and makes no claims to present exhaustive information on a. subject of such broad scope During the course of the VET policy review it will be updated and evidence. from other elements of the project in particular the international questionnaire incorporated Countries are. invited to provide feedback and contribute additional research and data to the evidence base. 2 The paper draws from different approaches to the analysis of VET costs and benefits using. evidence from OECD countries It underlines the importance of examining the background factors which. determine the cost benefit relationship and discusses some methodological limitations The remainder of. the paper is divided into two parts The first deals with VET costs and their distribution between different. stakeholders The second sets out the different types of benefits and their determinants and sheds light on. the evidence regarding both the employer and individual returns to VET. Context affects VET costs and benefits, 3 The definition and provision of VET varies substantially across OECD countries VET systems. range from highly regulated structures in the dual system countries to situations like in the UK where. vocational education is highly fragmented and apprenticeships do not have a legally defined identity. Steedman 2001 Costs and benefits of alternative forms of provision differ accordingly As a. consequence it is difficult to carry out an aggregate cost benefit assessment or to come up with general. conclusions valid for all OECD countries, 4 VET systems are embedded in national economic structures which add to their heterogeneity. Flexibility or rigidity of the labour market has an impact on employee turnover and on employers capacity. to protect themselves against free riding and poaching Regulations such as minimum wages as well as the. impact of unions and involvement of employers are crucial in shaping the wage structure and hence. training costs and benefits In the standard theoretical model of human capital with perfect labour markets. workers capture all the returns to their general human capital and employers have no incentive to pay for. general training However when labour market frictions compress wages increasing the wages of less. skilled workers firms may invest in the general skills of their employees The reason according to. Acemoglu and Pischke 1998 is that labour market imperfections restrict mobility of workers This. implies that trained workers do not get paid their full marginal product when they change jobs and general. skills are turned into de facto specific skills As a consequence they argue regulated labour markets in. Europe and Japan generate more firm sponsored general training than for instance the US. 5 Other factors adding to the complexity of cost benefit analysis include the nature of vocational. education and training in vocational schools or work based and the specific occupation or industry. Characteristics of the students their age and level of prior schooling Bernier 2006 the time it takes them. to complete a VET programme and to find an apprenticeship place Steedman 2001 are also relevant. Methodological limitations, 6 The comparative study of VET costs and benefits is further complicated by the fact that there is. no standardized approach to VET data collection across OECD countries Kath 1998 Moy and. Adult learning and training has been excluded to focus the present study and because it has recently been dealt with. in the OECD study Promoting Adult Learning OECD 2005. EDU EDPC CERI 2008 3, McDonald 2000 Data sources differ substantially and are often incomplete or do not allow for a. distinction between vocational and general studies or for a disaggregated study of different client groups. As a consequence most studies used in this paper are based on national data sources and serve as case. studies or examples rather than being necessarily representative for all OECD counties. 7 Billett 1998 observes that while governments seek evidence to prove that expenditure of public. funds is producing demonstrable benefits the interest of employers in assessing the impact of training on. productivity is limited Many employers cannot provide data because they do not have separate cost. accounting for their training system Beicht et al 2004 This means that the data necessary to assess. benefits from VET are often missing, 8 A further methodological difficulty is that while costs and immediate benefits including earnings. and employment chances for students upon graduation from a VET programme are relatively. straightforward to measure medium and long terms benefits such as mobility or the capacity to upgrade. skills later in life are more difficult to quantify Winkelmann 2002 Outcome measures also tend to have. an economic focus neglecting community and personal outcomes that are less clearly measurable. 9 Overall it is difficult to show a causal relation between training and changes in sales volume. productivity and other profit measures of firms because there are many factors besides training that can. influence them Lankard Brown 2001 Moy and McDonald 2000 The same holds for the correlation. between initial training and benefits accruing to the individual later in life as it is difficult to isolate the. effect of VET from other variables that might have an impact on performance. Costs associated with vocational education and training. Defining the costs of VET, 10 VET costs can be divided into direct costs including apprentice wages salaries for training. personnel teaching material equipment building infrastructure etc and indirect costs such as tax. expenditures or subsidies but also opportunity costs forgone earnings as unskilled workers and drop out. 11 Compared to general or academic education the costs of VET are substantial in particular for. those occupations that require heavy equipment and sophisticated infrastructure In Germany the dual. VET system overall costs EUR 10 800 per year per person excluding apprentices salaries much more. than the EUR 4 500 per student in tertiary VET Fachhochschulen and the EUR 5 500 in tertiary. academic education universities this number excludes research expenses Konsortium. Bildungsberichterstattung 2006 22 As a consequence German firms which take on apprentices have to. bear net costs Beicht et al 2004,Who pays for VET, 12 Some scholars and policy makers argue that VET careers are not relevant any more However. evidence shows that the demand for blue collar workers i e VET graduates is high and salaries are on the. rise Meer 2007 Because of the high private rate of return to apprenticeship the question has been raised. whether future adjustments should be borne by apprentices themselves At the same time the social rate of. return2 to apprentices is sometimes substantial estimated 12 8 for male apprentices in Australia. Training raises output return to society is the present value of this increment in output over the person s working. EDU EDPC CERI 2008 3, supporting the case for policy measures to increase the level of apprenticeship training Dockery et al. 1998 Whether or not employer financial engagement should be made mandatory is questionable should. be based on careful weighting of resulting costs and benefits. 13 It is difficult even in data rich countries like Australia to find comprehensive evidence on. expenditure on training or the exact distribution of training expenditure by individuals employers and. government Ball 2005 In particular there is limited information about employer expenses and gaps in. data from private VET providers The table below indicates the various types of costs of alternative forms. of provision borne by different stakeholders in Australia. Table 1 VET costs borne by different stakeholders example Australia. School and higher TAFE and private VET On the job training. Individual Fees plus student time Fees plus students time Accept lower wages. State Costs of education Costs of education As an employer. institutions scholarships institutions scholarships. Employer Limited support for staff Support for staff doing Pay wages higher than. doing degrees fees and formal courses fees and productivity time of experienced. time off paid time off workers mistakes and wasted. resources in house training, Source Richardson S 2005 New estimates of the employers contributions to training. 14 In many countries co financing arrangements allow costs to be shared between the state the. employers and individuals Such cost sharing arrangements differ across countries and might vary over. time according to economic context variables with more state subsidies during recession for instance in. form of a premium for firms that manage to maintain or increase their apprenticeship places during an. economic downturn, 15 Billett 1998 points to a potential dilemma in VET funding arising from stakeholders diverging. aims and interests A national policy goal is to increase quality of VET Individuals might prefer to acquire. general transferable skills allowing them to move between occupations By contrast enterprises training. expenditure typically focuses on the skills and knowledge that are relevant to their particular needs So. what is best nationally building a skilful and adaptable workforce and what individuals strive for may be. different from the narrower interest of enterprises. Forms of government intervention, 16 Failure in training markets may result from credit constraints and other capital market. imperfections deterring potential trainees Government intervention may be necessary to correct for these. failures and can take place in regulatory or financial terms. 17 The state can regulate VET systems variously ranging from laissez faire approaches and systems. with high employer commitment to regulations establishing sectoral training funds or imposing levy. schemes Smith and Billett 2005 On the financial side Kath 1998 distinguishes between three main. types of public funding systems the liberal system where the companies essentially have the liberty of. establishing the quantity and quality of initial and continuing vocational training themselves and where the. State only prescribes levels of graduated qualification standards without however regulating the paths to. be followed for certification e g UK the neo cooperative model where employers associations and trade. EDU EDPC CERI 2008 3, unions actively steer the process of financial organization and where the State confines itself to putting a. legal stamp on group consensus e g Denmark and the interventionist model where the State as leading. actor assumes the role of designing the system in collaboration with the social partners e g France. 18 In general systems that are predominantly school based are overwhelmingly public funded Ball. 2005 In dual system countries by contrast apprenticeships are handled like a form of public private. partnerships within a well established co funding structure the state bears the cost of the education that. takes place in schools while employers finance workplace training. 19 Countries differ in the degree destination employer or individual students and form direct or. indirect of Government funding of VET In Germany there are by tradition no direct financial transfers of. public money to firms with respect to apprenticeship However in recent years the Federal Government. has increasingly financed apprenticeship places for unemployed young people in problem regions for. exact cost calculation see Berger 2003, 20 Indirect measures like government funded employer incentives to provide training exist in several. OECD countries France has statutory training levies and an apprenticeship tax from which employers are. exempted when they train apprentices However evidence on the effectiveness of such measures is mixed. M hlemann et al 2005 report that net costs to firms depending on degree of government intervention. have a significant impact on the initial decision to offer some rather than no apprenticeships but once the. firm has decided to train they do not affect the demand for apprentices He concludes that the provision of. subsidies to firms that already train apprentices should be avoided from as they do not boost the demand. for apprentices,Employer engagement in VET, 21 The German Federal Institute for Vocational Training Bundesinstitut f r Berufsbildung BIBB. has developed a model to assess costs to employers which can be divided into three categories personnel. costs of apprentices salaries and social benefits remunerations for the training personnel and various. other costs including the teaching material protective and specialist clothing administrative costs to. manage the training including fees to the Chambers of Industry Commerce and Trade the body. responsible for oversight and monitoring of apprenticeship in firms Rauner 2007. 22 The actual level of employer engagement in VET depends on a number of variables Hasluck. 2004 argues that in the UK example costs are not the main factor deterring employers from engaging in. apprenticeship training The barriers include lack of awareness of the programme concerns about. relevance of specific qualification frameworks lack of interest in work related training among young. people and the quality of applicants for apprenticeship training. 23 Large and medium size enterprises tend to spend more on training than small firms and training. expenses are also skewed by industry sector Comparing UK industries Hogarth and Hasluck 2003. reveal wide differences These are explained by the amount of off the job training as opposed to the extent. to which job is meant to be learned by doing i e training involves productive activities apprentice wage. levels and employment status of apprentices and related entitlement to services which increase social. charges to employers, 24 A frequent caveat of studies assessing employer financial engagement is that they do not clearly. distinguish between initial VET the focus of the present paper and continuous training for employees. However although most of the available evidence on initial VET refers only to apprenticeships efforts. have been made to provide a more complete picture Smith and Billett s 2005 typology includes the. following options enterprises have no legal obligation for training Canada United States United. EDU EDPC CERI 2008 3, Kingdom Netherlands Sweden employers voluntarily take significant responsibility for financing. training Germany Switzerland and Japan employers and unions set up training development funds. under collective industrial agreements Belgium Denmark and Netherlands the government offers tax. exemptions to enterprises which train their workers Belgium Chile Germany South Korea governments. introduce compulsory financing of training by employers Denmark France Ireland South Korea. 25 Broadly speaking there are two policy options to increase employer engagement either by. creating incentives to encourage voluntary involvement or by compelling employers through imposition. levies or licensing arrangements Smith and Billett 2005 Both approaches however have their caveats. Subsidies as discussed in the previous section are only effective in encouraging firms to start training but. not to increase the demand for apprentices in firms that already train M hlemann et al 2005. 26 Compelling measures have been criticised as well The Council of the German Economy for. Vocational Education Kuratorium der Deutschen Wirtschaft f r Berufsbildung lists 10 arguments against. general training contributions According to them it leads to less apprenticeship places employers. decreasing willingness to train cost increase for business more bureaucracy stronger influence by state. and trade unions on employers decisions loss of quality and competitiveness for German business and. loss of training places and of jobs, 27 Despite these concerns and employers reluctance some countries have introduced policies. requiring mandatory contributions and set up collective employer funds In Denmark for instance the AER. Arbejdsgivernes Elevrefusion was introduced in 1977 to provide incentives for firms to engage in the. provision of apprenticeship places Grollmann et al 2003 In case of a shortage of apprenticeship places. the number can be increased by financial support from the fund Moreover the apprentice s wages while. attending off the job training in college are 90 refunded by grants from the collective employers fund. The fund has provided some remedy to the problem of underprovision of apprenticeship places in. Individual student contributions, 28 Beicht and Walden 2005 observe a trend across many countries towards more contributions by. individual students to the funding of VET even though current student contributions are already. considerably higher than those made by university students The level of contributions varies between. occupations across and even within OECD countries Student financial contributions to VET programmes. can take various forms including fees for study at a vocational school charges for material and resources. necessary for their education and forgone earnings and leisure. 29 In Australia costs to students are highly variable there are differences in concession rates in. hours of course delivery and individual institutes impose additional fees and charges for resources and. material Watson 2005 provides a detailed analysis of the public and non public fees and charges for. material and resources to students in different Australian states and territories She finds that the material. and resource component increased the real costs to students of a VET course by between 50 and 100. 30 The form of payment by instalments availability of student loans etc affects the student. capacity to pay the course fees Demand side obstacles such as labour market imperfections capital market. imperfections or income inequalities can lead to underinvestment in education and training and may have. to be remedied by public sector involvement Demand side financing involves money following students. i e funds are given to individuals or institutions on the basis of expressed demand Direct demand side. funding mechanisms which transfer cash to individual trainees include grants to individuals and. guaranteed loans for education training Indirect demand side funding mechanisms include funding. EDU EDPC CERI 2008 3, training providers on the basis of the number of trainees recruited and or time spent in training on the basis. of an open enrolment policy West et al 2000, 31 The introduction of demand side financing mechanisms into public sector provision has been. explicitly linked to the introduction of market principles into education and training systems and the. deregulation of training supply Both types of mechanism aim to increase choice by fostering competition. on the supply side and to stimulate demand by empowering the individual to make their own training. choices A further demand side funding mechanism combines the two approaches a voucher scheme A. voucher transfers purchasing power without actually transferring money as funds are paid to the training. provider Earmarked funds are allocated to individuals so that they use to purchase training while the. training providers receives unit funding for trainees on submission of the voucher West et al 2000. Other incentive and support mechanisms include individual learning accounts and paid educational leave. Keating 2005, 32 The Youth Credit scheme in England and Wales in the 1990s West et al 2000 and training. vouchers in Germany Kath 1998 are examples of mechanisms to stimulate demand and encourage. individual investment in VET However according to West et al 2000 there are potential downsides. attached to voucher funding mechanisms deadweight loss i e enterprise or household expenditure on. education and training being substituted by public sector funds is likely to be an issue where training is not. guaranteed to be fully publicly funded anyways This implies that additional public spending is only. replacing private expenses instead of increasing the resources available to VET Other caveats are the. administrative costs that are higher compared to funding mechanisms that are not demand led. Benefits associated with vocational education and training. Defining the benefits of VET, 33 Benefits can take various forms and arise at different points in time during or much after the. course or training Individuals enjoy benefits from improved earnings employment chances mobility. capacity for lifelong learning measures of working conditions and job satisfaction Employers benefits. arise mainly from apprentices productivity increases The state yields net benefits both in terms of social. rents both individual and public costs plus positive externalities form increased productivity due to better. education and in fiscal terms education expenses versus increase in tax income from higher earnings from. better educated individuals Wolter and Weber 2005, 34 Some benefits such as greater general openness and ability to learn and upgrade skills later in life. are not easily quantifiable One alternative way to assess benefits beyond an economic analysis of the. material labour market benefits is to survey satisfaction both of employers and of individuals Beicht and. Walden 2005 have carried out a survey to assess subjective current and future benefits for further VET. This include issues like personal development improvements in efficiency on the job networking. improved perspective for better or more interesting employment chances to move up the career ladder. better earnings etc,Determinants of VET benefits, 35 The individual returns from VET depend on the individual students their abilities and family. background Students in VET systems differ systematically from those in general programmes so that. labour market outcomes cannot be directly compared Meer 2007 argues that students with practical. abilities are better off with a VET degree than academically oriented individuals and vice versa Moreover. whether or not certain VET qualifications and related skills reap benefits depends on the nature of the. demand for skills in the labour market Looking at skills in isolation from context variables can lead to. EDU EDPC CERI 2008 3, misinterpretations or over evaluations as upskilling a workforce without a corresponding improvement in. the equipment they use or the markets they service will rarely achieve more than a marginal improvement. in overall productivity and little more in profit for the business Davis 2007 7. 36 Another determinant of VET benefits is the orientation general versus occupation specific of. the programme Using data from the US Employer Opportunity Pilot Project EOPP survey and the. National Longitudinal Survey of Youth NLSY Loewenstein and Spletzer 1999 assess the degree of. specificity and generality of employer provided training They analyse how direct measures of specific and. general training affect wage growth and mobility In spite of the emphasis that labour economists have. placed on specific training they find that employers in the EOPP and workers in the NLSY indicate that. most of the skills obtained through employer provided training are useful quite generally Although. companies might be leery of providing general training for fear of poaching it seems to have a greater. effect on productivity than has specific training Barrett and O Connell 2001 used data from enterprises. in Ireland and find that although statistically significant positive outcomes in productivity growth were. realised for general and all sorts of training this was not true for specific training However Lankard. Brown 2001 argues that to be successful training must be targeted toward a business need in partnership. with the employers, 37 The benefits of VET also depend on how it is provided Gospel and Foreman 2002 Single. employer training if it can integrate training into the broader human resource planning and the objective of. staff retention can be an advantage because actual employers should be best placed to assess training. needs and outcomes At the same time individual firms may not train for fear of poaching and especially. medium or small firms may lack in house capacity Colleges provide wide access and national coverage. but they can be somewhat remote form the changing needs of employers and their teaching and equipment. can be out of date especially in high technology sectors Private providers especially for profit. companies have of necessity to be flexible and responsive to market demands However quality varies. and they may have limited employer links and be reluctant to train in more expensive areas Multi. employer training reduces administrative costs At the same time it stays close to employers Theoretically. group provision can overcome some of the poaching and market failure problems Multi employer. provision may ensure training in broad skills of a potentially transferable kind which makes it more. attractive for young people, 38 Finally looking at the employer point of view whether or not a firm can recoup their investments. in human capital is heavily dependent on several environmental variables such as turnover or staff mobility. which in turn depend on the flexibility of labour market regulation. Employer perspective, 39 The benefits accruing to employers can be measured in different ways They arise from returns. from productive performance of trainees saved costs of recruiting external skilled workers saved. outage costs when skilled workers are in short supply performance differences between company trained. and external skilled workers supply benefit e g image improvement Employers reap benefits by saving. costs they would incur if they had to hire new employees including the recruitment process integration of. new employees and the risk of hiring a person that is not known to the company from previous experience. 40 Fluctuation or mobility i e whether the employer can keep the apprentice as an employee after. the training is accomplished determines how much benefits an employer can reap from training. apprentices But these are not the only context variables determining net VET benefits to employers. W mann 2004 argues that in Germany in the past years costs of apprenticeships have increased from. 1988 to 1995 average apprentice salaries rose by 54 for trade salaries it rose by 66 while wages in. general rose only by 30 At the same time the number of days that an apprentice actually spends in the. EDU EDPC CERI 2008 3, work place and in productive activity has diminished from 134 to 124 between 1991 and 2000 Another. trend that decreases benefits to employers in Germany is the shortening of the apprenticeship years because. apprentices only become productive and contribute to the firm s benefits after their third year of training. Rauner 2007, 41 The picture is different in Switzerland another dual system country where the value of. apprentices output outweighs the costs even though the salaries of Swiss apprentices are much higher than. in Germany Schweri et al 2003 According to Rauner 2007 in Swiss firms apprentices provide. substantial productive work while in Germany the curriculum includes many hours of not immediately. productive activities Hence Swiss firms do not depend on a regulated labour market and low workforce. mobility to make training worthwhile Wolter et al 2006. 42 An explanation for such variation in productivity has been put forward by Wolter 2005 who. argues that firms which operate in a flexible Swiss labour market have to make sure that apprentices are. productive because they cannot be sure to keep their apprentices as employees once the apprenticeship. period is over He however stresses that even though labour market regulations determine employee. mobility and hence firms willingness to invest in their training these aggregate results cover a. heterogeneous picture in the two countries pointing to the fact that despite a common legislative and. economic framework firms have scope to render training productive. Individual returns to VET, 43 In discussing the labour market benefits employment and earnings of VET students it is. important to bear in mind that in many OECD countries students enrolling in VET tend to be the lowest. attainers at the end of compulsory education Hence an evaluation of the returns to vocational education. includes a certain ability bias and is linked to a process of self selection It is important to find the right. counterfactual in comparing labour market outcomes Studies often compare VET student outcomes with. those of young adults who completed compulsory education without obtaining any higher level of. qualification Results of such studies are mixed, 44 Studies typically show that individuals with VET qualifications receive higher wages than those. without post school qualifications especially early school leavers though there are some exceptions UK. data showing little labour market value of certain VET qualifications Evidence on employment is equally. mixed Across a range of labour market outcomes these studies also support the view that the benefits of. VET participation are more pronounced in comparison with early school leavers than with those who. complete school without undertaking further study Where they do compare outcomes for males and. females they also tend to find that the benefits of participation for males are more substantial than those. for females As a general result a work based component of VET studies seems to have an advantage over. purely school based VET Other research suggests that VET graduates are more likely to receive formal. training than those with no post school qualifications. 45 Education investment by individual students entails risks of two types non completion meaning. that costs of education already spent cannot be compensated by later benefits or a situation where a. completed education does not reap the expected benefits Wolter and Weber 2005 However Pereira and. Martins 2002 demonstrate in an international comparative study of sixteen OECD countries that the. higher the variation in earnings i e the higher the risk the greater the returns to education. EDU EDPC CERI 2008 3, Table 2 Benefits to individual students if vocational education and training. Author Year Data Country Results, Bishop Ma e High school student Students who take a certain percentage of vocational subjects. 2005 reports and go on to earn higher wages and work more compared to. transcripts purely academic students There are both short and medium. US term returns to career technical education and payoffs. increased over time, The share of upper secondary students in Career Tech. programmes has a statistically significant positive association. with rates of graduation from upper secondary school and the. proportion of 15 19 year olds in school or college i e drop out. is less likely in vocational than in academic tracks. Bonnal Survey 19 months Apprentices especially men perform better in the labour. 2002 transition from school market than students from VET schools Positive effect mainly. to first job arise from better performance at very beginning of the period. France when apprentices are hired immediately or within two months. by the firm on which they performed their internship The effect. is even stronger when corrected for negative selection bias. associated with choice of apprenticeship, Euwals Register data Apprentices who stay with their training firms after receiving. Winkelmann their diploma have higher wages and stay in their first job. 2002 Germany longer than apprentices who leave the training firms. Hofer Lietz Social Insurance In terms of long term unemployment and employment stability. 2004 data high school graduates do better than ex apprentices and. Austria unskilled rank lowest with differences between unskilled and. ex apprentices being more pronounced than between ex. apprentices and high school graduates Relatively weaker. effect for women Monthly median earnings slightly higher for. secondary school education than for ex apprentices and. unskilled 20 less than ex apprentices High school, graduates earn less than ex apprentices maybe due to. different labour market experiences female ex apprentice. workers have only a minor earning advantage over unskilled. Jenkins et al Labour Force Survey Negative average returns to National Vocational Qualification. 2007 England level 2 no evidence for an average return to NVQ3. qualifications However there are other VET qualifications. BTEC City Guilds that generate substantial wage premia. Level 3 vocational qualifications are associated with a higher. probability of employment There is less evidence of any. association at level 2, Karmel Nguyen Student Outcomes Compares students that have only partially completed VET. 2006 Survey certificate and VET graduates finds positive association. Australia between the highest VET education level and employment. Compares students that have only partially completed VET. certificate and VET graduates find positive association. between the highest VET education level and wages,EDU EDPC CERI 2008 3. Table 2 Benefits to individual students if vocational education and training continued. Author Year Data Country Results, McIntosh Labour Force Survey Vocational qualifications at all levels can improve the. 2004 UK employment chances of unqualified school leavers even when. panel data are used to control for unobserved individual. heterogeneity and to ensure that the qualification is acquired. before employment is attained However few unqualified. school leavers seem to be following this vocational route to. qualifications, McIntosh Labour Force Survey Apprenticeships compared to other vocational qualifications. 2007 UK significantly positively related to probability of being employed. Wage returns have increased over time especially for Modern. Apprenticeships although these results might be driven by. selection and related ability bias, Meer National Education Evidence for a comparative advantage in track selection those. 2007 Longitudinal Survey that self selected into a VET track are not likely to earn more. had they chose differently and vice versa those on the. United States academic track are better off on that track. Neuman et al Various national data Look at disaggregated data returns to VET for people from. 2002 important minorities recent immigrants Sephardic Jews and. Israel Israeli Arabs and disadvantaged groups females efficacy of. VET in raising wages for these groups is very mixed differing. from group to group Argument for use of sub national data. Ryan Survey of Education Individuals who complete VET qualifications generally receive. 2002a and Training higher wages than similar individuals who do not complete. longitudinal VET qualifications This benefit continues throughout their. career The wage effects vary by VET qualification level and. Australia are higher for males who complete VET qualifications than. females Returns to VET depend critically on the work study. combination used by individuals to undertake their courses. The qualifications are highest for those who work full time and. study part time while undertaking their course, Ryan Survey of Education Full time employment outcomes are significantly higher for. 2002b and Training VET graduates relative to students without post school. longitudinal qualification immediately after entering the labour market. These differences tend to narrow as the outcomes of the. Australia comparison groups improve VET graduates appear less likely. to be studying at any point in time or to have recently. undertaken a training course than university graduates Actual. fields in which VET graduates complete their qualifications. also have an impact on outcomes,EDU EDPC CERI 2008 3. REFERENCES, Acemoglu D and J S Pischke 1998 The structure of wages and investment in general training The. Journal of Political Economy Vol 107 No 3 pp 539 572. Ball K 2005 Relative contributions of individuals industry and government to the costs of VET in. Ball K ed Funding and financing of vocational education and training Research readings. NCVER Adelaide, Barrett A and P J O Connell 2001 Does Training Generally Work The Returns to In Company. Training Industrial and Labor Relations Review Vol 54 No 3 pp 647 662. Barrett Beicht U G Walden and H Herget 2004 Costs and benefits of in company vocational. educational and training in Germany BIBB Bonn, Beicht U and G Walden 2005 Individuelle Kosten und individueller Nutzen beruflicher. Weiterbildung in technischen Berufen sowie in Ma nahmen mit technischen Inhalten Gutachten im. Rahmen der Berichterstattung zur technologischen Leistungsf higkeit Deutschlands BIBB Studien. zum deutschen Innovationssystem No 1, Berger K 2003 Was kostet den Staat die Ausbildungskrise Umfang und Struktur staatlicher Ausgaben. zur Ausbildungsf rderung BWP No 2 pp 5 9, Bernier A 2006 valuation du rendement de la formation dans les entreprises canadiennes. Communication r alis e dans le cadre du 8e Colloque annuel des tudiant e s des cycles sup rieurs. du CRISES Universit Concordia Montr al, Billett S 1998 Enterprises and vocational education and training expenditure and expected returns. Journal of Vocational Education and Training Vol 50 No 3 pp 387 402. Bishop J H and F Ma e 2005 Economic returns to vocational courses in U S High Schools in. Laugslo J and Maclean R eds Vocationalisation of secondary education revisited Springer. The Netherlands pp 329 362, Bonnal L S Mendes and C Sofer 2002 School to work transition apprenticeship versus vocational. schools in France International Journal of Manpower Vol 23 No 5 pp 426 442. Davis M 2007 Skills in context A briefing prepared by the Centre for Enterprise Futureskills Scotland. Dockery A M K Norris and T Stromback 1998 The social returns to apprenticeship training The. Australian Economic Review Vol 31 No 1 pp 37 46, Euwals R and Winkelmann R 2002 Mobility after Apprenticeship Evidence from Register Data. Applied Economics Quarterly Vol 48 No 3 4 pp 256 278.
Hidden Heritage: A Gestalt Theoretical Approach to the Aesthetics of Management and Organisation Introduction Gestalt psychologists have traditionally emphasised the sensual perception and the aesthetic dimension of organisations. Today, however, they only take small steps to apply their specific knowledge to processes of organisational change
This manual brings together an understanding of factors determining livelihood security with a way of working with people at the village level. It relies on field workers who recognize the assets, experience and knowledge of the most disadvantaged. It can help people to identify
About this documentation Symbol key 1 8 EDSYPFLD EN 9.0 1.5 Symbol key Symbol Meaning U V W Motor with plug connection U V W Motor and blower with plug connection Feedback with plug connection U V W Motor with terminal box U V W Motor and blower with terminal box Feedback with terminal box Cable between motor and servo controller/frequency inverter
detentions are mind boggling. Official state media reported the detentions of 4,434 persons in Tibetan areas (1,315 in Lhasa) between March and April 2008, although in November 2008, official media reported that approximately 1,317 persons were arrested, 1,115 of whom were released afterwards. Overseas organizations and the Tibet government-