[Global HR Forum 2011] Linking Education with the Labor Market for Increased Employment : The Swiss...
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Transcript of [Global HR Forum 2011] Linking Education with the Labor Market for Increased Employment : The Swiss...
Linking Education with the Labor Market
for Increased Employment:
The Swiss WayThe Swiss Way
Prof. Dr. Stefan C. Wolter, President SFIVET
Swiss Federal Institute for Vocational Education and Training
Global HR Forum 2011, Seoul
Closeness to the labor market:
Apprenticeship?
Stefan C. Wolter 2Global HR Forum 2011
Only apprenticeship? – the
ingredients for a successful formula
1. Permeability of the education system: but concentration on
comparative advantages from early on
Stefan C. Wolter 3Global HR Forum 2011
2. Strong partnerships (government – employers – schools):
but labor market driven
3. Good incentives: economic benefits for everyone
Permeability: but concentration on
comparative advantages
Academic universities
Professional education
Universities of applied science
Stefan C. Wolter 4Global HR Forum 2011
Compulsory schooling (9 y)
Dual and school based vocational educationUniversity entrance diploma
Division of labor within the
educational system
The formal education system shapes our policy options in two
distinctive ways:
1. Vocational and Professional Education (VPET) should
Stefan C. Wolter 5
1. Vocational and Professional Education (VPET) should
guarantee employability, inclusion and competitiveness of
the Swiss economy (labor market needs and permeability in
the educational system are the guiding principles)
2. Academic system for research & innovation (guiding principles
are selection and global competitiveness of academic
institutions)
Global HR Forum 2011
Excellence in academia: the global
shares in the Shanghai 100 Ranking
40
50
60
70
Stefan C. Wolter 6Global HR Forum 2011
0
10
20
30
CH UK US AUS GER NL F JAP
Share of universities Share of students
Strong partnerships: but labor
market driven
1. Employers are organized in occupational associations and
recognized as institutional partner by the government
(important to guarantee labor market mobility)
2. Occupational associations decide on curricula, training
Stefan C. Wolter 7Global HR Forum 2011
2. Occupational associations decide on curricula, training
content and examination standards (guarantees labor market
closeness)
3. Government (and schools) defines and provides: a) content
of general education (life-long learning); b) basic vocational
skills (uniformity of skills acquisition and efficiency of
provision); c) educational degree (access to higher education)
Some important framework
conditions
• Professions (>235) cover all sectors of the economy (e.g. IT-
engineers, opticians, dental-assistants, nurses, bakers, etc.):
→ makes the VET system business cycle resistant
• Constant reforms of curriculas → rapid adaption to structural
Stefan C. Wolter 8Global HR Forum 2011
• Constant reforms of curriculas → rapid adaption to structural
and technological change
• Every apprenticeship ends with a national (federal)
certificate, recognized by all employers (professional content is examined
by external and certified experts) → labor market mobility
• No-work contract after the apprenticeship has ended → labor
market flexibility
Incentives:
Economic benefits for everyone
Why are economic incentives important?
a) For companies: if training does not pay (apprentices’
productive contribution or savings in hiring costs), no
apprenticeship contracts are offered
Stefan C. Wolter 9Global HR Forum 2011
apprenticeship contracts are offered
b) For potential apprentices: if it does not pay in terms of higher
salaries, the most talented youth will choose general
education
c) For the government: if they VET does not generate good
employment and salaries, investment in other types of
education is advisable
Incentives: From the firms’
perspective
• Costly regulations and requirements
(training, trainers, equipment, tests, etc.) and apprentices
wages to guarantee quality
• At least two sources of benefits:
Stefan C. Wolter 10Global HR Forum 2011
• At least two sources of benefits:
• Productive work of apprentices during training (skilled and
unskilled work)
• Reduced hiring and recruitment costs for skilled workers
(screening and firm or product specific knowledge)
Cost and benefits for training firms
in US$
3-year apprenticeship
4-year apprenticeship
Gross cost 80’800 113’388
Stefan C. Wolter 11Global HR Forum 2011
Gross cost 80’800 113’388
Productive contribution 93’120 115’488
Net benefit 12’320 2’100
From the apprentices’ perspective:
two sources of investment
Stefan C. Wolter 12Global HR Forum 2011
From the apprentices’ perspective:
two sources of investment
Firm
Stefan C. Wolter 13Global HR Forum 2011
Private rates of return: good option
values for VET on tertiary level
7
8
9
10
. in
%
Stefan C. Wolter 14Global HR Forum 2011
4
5
6
7
Basic Vocational
Education
University Entrance
Diploma
Professional
Education (ISCED
5B)
Universities of
Applied Science
(ISCED 5A)
Academic
Universities (ISCED
5A)
rate
p.y
. in
%
Government: reduced spending due
to private investments
Stefan C. Wolter 15Global HR Forum 2011
What makes VET successful in
Switzerland?
• Driven by the economy: VET as a driver of structural change
(rapid adoption of new technologies)
• VET provides an educational degree – attractive for talented
youth
Stefan C. Wolter 16Global HR Forum 2011
youth
• General skills are learned in a problem oriented setting
(motivation for theory adverse youth)
• National recognition of standards and certificates across
industries and sectors (high degree of mobility)
• Economic incentives for everyone!
Thank you for your attention!Thank you for your attention!