How can we establish strong linkages between actors from the education and employment systems?

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1 How can we establish strong linkages between actors from the education and employment systems? Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich Workshop with Prime Minister Vučić, at the Chamber of Commerce and Industry of Serbia, Belgrade

2 Overview 1. Functions of education systems and the purpose of VET 2. Comparing VET systems 2.1 Analytical framework to compare VET systems 2.2 KOF Youth Labor Market Index 2.3 KOF Education-Employment Linkage Index 3. Why is Switzerland so strong? 4. How can we establish strong linkages between actors from the education and employment systems? 5. Possible next steps in Serbia Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

3 Functions of education systems There are three main functions of the education system. We analyze them to find out the extent to which: a. individuals are enabled to independently shape their own biographies, their relationships to their environments, and lives in the community (individual control ability), b. the abilities required on the labor market are made available, thus securing the volume of labor, quantitatively and qualitatively, that is necessary for prosperity and social development (human capital), and c. social participation is ensured, including the aspect of social cohesion (equality of opportunity / equity). Source: Klieme et al Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

4 What is the purpose of VET? Hence, the main focus is on preparing young people for the labor market by organizing a meaningful and effective educational process. However, offering progression routes within the whole education system (permeability no dead end education) makes VET attractive for all youngsters. Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

5 Meaningful and effective educational processes: The concept of the VET Curriculum Value Chain Curriculum Design Phase Curriculum Feedback Phase Curriculum Application Phase Outcomes on the labor market Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

6 Overview 1. Functions of education systems and the purpose of VET 2. Comparing VET systems 2.1 Analytical framework for comparing VET systems 2.2 KOF Youth Labor Market Index 2.3 KOF Education-Employment Linkage Index 3. Why is Switzerland so strong? 4. How can we establish strong linkages between actors from the education and employment systems? 5. Possible next steps in Serbia Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

7 Analytical Framework: Comparing VET Systems Governance Educational Processes (Curriculum Value Chain) Theoretical Framework Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

8 Employment Education System Theory: Linkage between Education & Employment Systems Encoding Programming Reflection of unit Professional Career Education Structuring of operations Pass / Fail VET system code and programming (own depiction) VET Curriculum Coupling or linkage mechanisms Encoding Programming Reflection of unit Wage Labor Market Structuring of operations Payment / Non-payment Skills supply and demand for labor Employment system code and programming (own depiction) Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

9 VET Curriculum Value Chain leads to outcomes on the labor market (employment system) Curriculum Design Phase Curriculum Feedback Phase Curriculum Application Phase Outcomes on the labor market Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

10 Overview 1. Functions of education systems and the purpose of VET 2. Comparing VET systems 2.1 Analytical framework for comparing VET systems 2.2 KOF Youth Labor Market Index 2.3 KOF Education-Employment Linkage Index 3. Why is Switzerland so strong? 4. How can we establish strong linkages between actors from the education and employment systems? 5. Possible next steps in Serbia Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

11 KOF Youth Labour Market Index Correlation between Youth Unemployment Rate and KOF Youth Labor Market Index Youth Unemployment Rate Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

The KOF YLM Index Tool Interactive web tool for your personal use: http://viz.kof.ethz.

12 The KOF YLM Index Tool Interactive web tool for your personal use: Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

13 KOF Youth Labor Market Index Spiderweb Chart of Scores 2013 Relative unemployment ratio Incidence of long-term unemployment Unemployment rate Relaxed unemployment rate NEET rate The further a value is from the center, the more positive the situation is for the relevant indicator. If the value is zero, this means that no data are available for this indicator in the country Concerned Skills mismatch rate Temporary worker rate Formal education and training rate Involuntary part-time worker rate Vulnerable employment rate Atypical working hours rate Switzerland 2013 Finland 2013 In work at risk of poverty rate Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

14 Youth Labor Market Index Nr. of available indicators used in the calculation of the index KOF Youth Labour Market Index over time Switzerland Finland France Italy (Source: Renold, Ursula, Bolli, Thomas, Egg, Maria Esther, Pusterla, Filippo: On the Multiple Dimensions of Youth Labor Markets, KOF Studies, 51, Zurich, 2014) Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

15 Correlation: VET approach and KOF YLMI - I Percentage of school-based VET Quelle: OECD (2015) Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

16 Correlation: VET approach and KOF YLMI - II Switzerland Percentage of combined school-/workplace-based VET Source: OECD (2015) Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

17 Overview 1. Functions of education systems and the purpose of VET 2. Comparing VET systems 2.1 Analytical framework for comparing VET systems 2.2 KOF Youth Labor Market Index 2.3 KOF Education-Employment Linkage Index 3. Why is Switzerland so strong? 4. How can we establish strong linkages between actors from the education and employment systems? 5. Possible next steps in Serbia Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

18 What is education-employment linkage? Education System Linkage Hypothesis Employment System Labor Market Outcomes Education system Program: Curriculum Code: Passing/failing: career Employment system Program: Labor market Code: Payment/Non-Payment: Wages Generally, linkage is in all the processes where actors from the education and employment systems interact in VET. It should help improve graduates labor market outcomes. Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

19 Linkage Linkage as an equilibrium of power Optimal Linkage Defining linkage: An equilibrium of power between actors from the education system and employment system during VET processes. Education Power Employment What goes into power sharing? Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

20 Subdimensions Dimensions and subdimensions Dimensions Curriculum Design Phase Curriculum Application Phase Curriculum Feedback Phase Learning place Qualification standards determination Examination form determination Involvement quality Workplace regulation Cost sharing Equipment provision Teacher provision Information gathering Update timing Examination Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

21 KOF EELI (Education-Employment Linkage Index) KOF EELI: Results by country Focus Countries Secondary Countries Average Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

22 Results for the Netherlands Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

23 Correlations between KOF EELI and KOF YLMI Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

24 Overview 1. Functions of education systems and the purpose of VET 2. Comparing VET systems 2.1 Analytical framework for comparing VET systems 2.2 KOF Youth Labor Market Index 2.3 KOF Education-Employment Linkage Index 3. Why is Switzerland so strong? 4. How can we establish strong linkages between actors from the education and employment systems? 5. Possible next steps in Serbia Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

25 Results for Switzerland Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

26 Governance: Impact on Curriculum Value Chain VPET multilevel governance Professional organizations (Trade Unions) Companies Government (central) SFIVET Cantons Schools, providers Public-private Partnership defined by law Curriculum Design Phase Curriculum Feedback Phase Curriculum Application Phase Outcomes Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

Training costs are shared among public and

27 Public-Private-Partnership: Setting stimulating incentives for VET success Firms profit during training from apprentices productive output. Training costs are shared among public and private partners. Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

28 Percentage of job offer Job Market Monitor Switzerland % 90% Not easy to teach in school 80% 70% 60% 50% 40% 30% 20% 10% 0% Poly. (compulsory education) Poly. (higher education (tertiary A or B)) Poly. (Soft Skills) Poly. (apprenticeship TVET) Poly. (experience) Source: Stellenmarkt Monitoring, Universität Zürich Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

29 Overview 1. Functions of education systems and the purpose of VET 2. Comparing VET systems 2.1 Analytical framework for comparing VET systems 2.2 KOF Youth Labor Market Index 2.3 KOF Education-Employment Linkage Index 3. Why is Switzerland so strong? 4. How can we establish strong linkages between actors from the education and employment systems? 5. Possible next steps in Serbia Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

30 How can we establish strong linkages? The main features of VET in top performing countries are: Employers are involved in setting qualification standards deciding when an update needs to happen setting examination form Students spend most of their time in the workplace instead of the classroom Most important factor: Employers and their associations must be involved! Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

31 How to establish strong linkages: 1) Start by launching a dialogue among stakeholders The first and most important step to digesting KOF EELI results (or other research results) for any country is launching a dialogue among stakeholders on questions such as: Do we agree with the findings? If no, why? Are there any results we find surprising? Are there any bad results that we already knew about? Do we have a strategy on where to start to reform the system? Do we have all the information we need to start a reform process? Do we have enough resources and expertise to start a reform process? Do we have a strategy how to organize buy-in from companies? Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

Discussion about the role of employers: Consumer of skills OR Producer and Consumer Education System Supply of Skills Skills Labor Market Employment System Demand for Skills Education System Employm

32 Discussion about the role of employers: Consumer of skills OR Producer and Consumer Education System Supply of Skills Skills Labor Market Employment System Demand for Skills Education System Employm Supply of Cooperation Skills ent System Employment System Skills Skills Skills Labor Market Employers as consumers of skills Employers as producers and consumers of skills Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

33 Overview 1. Functions of education systems and the purpose of VET 2. Comparing VET systems 2.1 Analytical framework for comparing VET systems 2.2 KOF Youth Labor Market Index 2.3 KOF Education-Employment Linkage Index 3. Why is Switzerland so strong? 4. How can we establish strong linkages between actors from the education and employment systems? 5. Possible next steps in Serbia Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

34 KOF Youth Labor Market Index: Spiderweb Chart of Scores 2012 and 2013 for Serbia Relative unemployment ratio Incidence of long-term unemployment rate Unemployment rate Relaxed unemployment rate NEET rate The further a value is from the center, the more positive the situation is for the relevant indicator. If the value is zero, this means that no data are available for this indicator in the country Concerned Skills mismatch rate Temporary worker rate Formal education and training rate Involuntary part-time worker rate Vulnerable employment rate In work at risk of poverty rate Atypical working hours rate Serbia 2012 Serbia

35 KOF Youth Labor Market Index Spiderweb Chart of Scores 2013 Relative unemployment ratio Incidence of long-term unemployment Unemployment rate Relaxed unemployment rate NEET rate The further a value is from the center, the more positive the situation is for the relevant indicator. If the value is zero, this means that no data are available for this indicator in the country Concerned Skills mismatch rate Temporary worker rate Formal education and training rate Involuntary part-time worker rate Vulnerable employment rate Atypical working hours rate Switzerland 2013 Finland 2013 France 2013 In work at risk of poverty rate Italy 2013 Serbia 2013 Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

36 Youth Labour Market Index Nr. of available indicators used in the calculation of the index KOF Youth Labor Market Index over time for Serbia (limited No. of indicators) Years Serbia Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

37 Which is the most relevant program to be reformed? What are - long-term (10-15 years) - Mid-term (8 years) - Short-term (3 years) reform goals? Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

38 Analytical Pre-Reform Phase I How is the current program compared to international benchmark countries positioned (diagnoses)? (possible instrumemt: EELI current state) How should the current program be reformed in years, e.g. long-term goal (possible instrument: EELI future state)? What is the willingness to train among Serbian companies? (possible instrument: EbS Survey, Potential of businesses) What resources (financial and non-financial) are available to secure to long-term goal achievement? What is the governance of the new reform scheme? Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

39 Governance: Impact on Curriculum Value Chain VET multilevel governance Professional organizations (Trade Unions) Companies Government (central) Teacher Uni Provinces, districts Schools, providers Public-private Partnership defined by law Curriculum Design Phase Curriculum Feedback Phase Curriculum Application Phase Outcomes Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

40 Analytical Pre-Reform Phase II What kind of processes along the Curriculum Value Chain need to be organized in order to implement the new reform? Curriculum Design Phase Curriculum Application Phase Curriculum Feedback Phase Qualification standards determination Examination form determination Involvement quality Learning place Workplace regulation Cost sharing Equipment provision Teacher provision Examination Information gathering Update timing Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

41 Long-term strategy and inter-generation project Education needs time commitment of all partners Public campaign Status of VET Most challenging Aspect of a reform New legislation? Up-scaling and country/state-wide introduction New VET pathway Trailblazers pilot II Analytical & preparation phase Evaluation/Research: what works? pilot project(s) I Measuring Outcome- Effects on a Makro-level

42 Preparation Phase I Who is in charge with the management of the pilot phases? What is the project organization and project planning (implementationplan)? Where are the financial resources for the pilot phase coming from? Who is part of the reform team (leader, manager, project owner, collaborators)? What kind of communication strategy is planned to support the reform process? Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

How to establish strong linkages: Work with us on your own reform case If you want to have a deeper understanding about what matters within reform processes and how to

43 How to establish strong linkages: Work with us on your own reform case If you want to have a deeper understanding about what matters within reform processes and how to apply that knowledge to your own country, please join us at the next CEMETS Summer Institute 2017 Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

44 Thank you for your attention and I wish you success with your VET reforms! For more information please contact me: ursula.renold@kof.ethz.ch

Basic organisation model

Country name: Luxembourg PES name: Agence pour le Développement de l Emploi (ADEM) Basic organisation model Objectives ADEM aims to promote employment by improving the governance of employment policies