panel 1b solutions to the skills gap: refocusing education and training

PANEL 1B

Solutions to the Skills Gap: Refocusing Education and

Training

Knowledge Economy Forum VICambridge April 2007

Panel 1B: Refocusing Education and Training

Challenges for Education and Training Systems

Focused on Vocational Education because:

– VE reform is one of the most difficult issues in education policy worldwide;

– VE is often ignored during discussions of secondary education reform

– But VE must be articulated to Secondary and Tertiary Education and to Life Long Learning

Summary of Key Issues

Issues and Propositions arising from report:

Enhancing Labor Market Outcomes and Fiscal Efficiency, World Bank EU8 Fiscal Series (2007)

Constraints encountered in 14 years of reform in New EU Countries

Early in the process of transition - background

Inadequately resources ( including needed materials and equipment)

Poorly qualified and motivated teachers; Narrowly specialized vocational education

tended to be provided too early. Crisis in enterprises meant that employers

could not afford to train or to pay for training and were not expanding recruitment.

Transition to markets - background

Changing Structure of Demand;

Changing Structure of occupations;

Narrow wage differentials affected incentives to acquire relatively low-level technical skills;

Institutions and instruments for managing VE were missing;

Quality controls were over inputs rather than outputs;

Social partner organizations were weak / discredited.

Vocational Education and Fiscal Efficiency (1)

A very large system: VE accounts for between 25 percent and 79 percent of upper secondary enrollment in the former centrally planned countries of the EU (EU8)

Indirect – through effect on productivity of labor and on economic competitiveness and growth

Direct – demand on public finance, through direct expenditure, support to employers and individual students

Vocational Education and Fiscal Efficiency (2)

Quality improvement of schooling at this level could contribute to competitiveness in skill-intensive sectors – to the benefit of growth rates and government revenue.

Increase in expenditure efficiency, incentives for more private provision in response to specific labour market signals and greater involvement of employers in financing and provision of VE could contribute to fiscal space.

Ranking (out of 117 countries) by innovation sub-index, EU8 countries, selected OECD countries, Chile, China and India: 2006

Countries Ranking Countries RankingJapan 1 Spain 35

U.S.A 2 Chile 39

Finland 4 Slovakia 42

Germany 5 Poland 44

India 26 Lithuania 50

Czech Republic 28 China 54

Hungary 31 Latvia 66

Slovenia 34

Source: World Economic Forum

Public Expenditure on VE

Public expenditure on vocational education as % of GDP

0.2

0.3

0.4

0.5

0.6

0.7

0.8

1998 1999 2000 2001 2002 2003 2004

Poland

Slovakia

Lithuania

Country/year Level of VE % of GDP% of public

expenditure on edu.

Poland 2004 ISCED 2, 3 & 4 0.56% 11.00%

Czech Republic 2003 ISCED 2 & 3 0.97% 20.00%

Slovakia 2004 ISCED 2 & 3 0.58% 15.70%

Lithuania 2003 ISCED 2 & 3 0.29% 5.20%

Estonia 2004 ISCED 2 & 3 0.44% …

Source: Country questionnaires

The unit cost of VE is much higher than that of general education.

Differences in student/teacher ratios – lower in vocational secondary schools

VE tend to have larger numbers of non-teaching staff Larger premises – workshops Dormitories Proportion of students receiving stipends

Propositions about VE Reform (1)

It would not be possible or advisable to fund adequately a traditional VE system which would provide ready-to-work recruits with narrowly specialized skills for the economy’s enterprises.


One way to reduce costs would be to locate practical training entirely in-plant but this is increasingly difficult


EU8 employers’ traditional expectations of a fully-subsidized VE system delivering ready-to-work, specifically-skilled recruits are unreasonable

But: school system can deliver flexible and trainable recruits with broad transferable skills.


Traditional VE was the traditional answer to the question, 'What to do with the less able?' but this answer no longer convinces;

Benefits of avoiding premature tracking are now acknowledged (e.g. see Poland’s PISA results)

Later specialization more equitable

410

415

420

425

430

435

440

2000 2003

Czech Republic Hungary Poland

PISA scores in reading literacy achieved by the 25th percentile of 15-year-olds, 2000 and 2003

Propositions about VE Reform (4): the Polish Hypothesis

Polish 15-year-olds who took the OECD PISA reading literacy tests in 2000 were already separated into general schools (for the successful) and vocational schools (for the failures).

By PISA 2003, Poland had lengthened the period of basic education and almost all who took the tests were in the final year of a shared lower secondary education. The unexpected improvement in the scores of bottom 25 percent may have many explanations but is at least consistent with the hypothesis that they benefited from not having been segregated.


Parents and students are showing an increasing preference for GE over VE

– Why are parents & students ‘voting with their feet’?– Labor market results of VE (measured by unemployment rates &

average earnings) are no better & often worse than those of GE.– The huge expansion of higher education in EU8 countries

‘backwash effect’ on demand for GE

Gross enrollment rates, higher education, EU 8 countries,1990-2004

Source: UNICEF TransMONEE Database

0 20 40 60 80 100

Czech Republic

Hungary

Poland

Slovakia

Slovenia

Estonia

Latvia

Lithuania

1990

2004

Vocational/ technical as % of total secondary enrollment, EU 8 countries,1990-2004

Source: EUROSTAT

0% 20% 40% 60% 80% 100%

Czech Republic

Hungary

Poland

Slovakia

Slovenia

Estonia

Latvia

Lithuania

1990

2004

Some principles for reform of VE (1)

Do not try to recreate the old model;

Close or merge non viable schools;

Use need as the criterion for subsides;


Make all practical training in-plant; Explore alternative sources of funding, but

cautiously; Encourage the growth of private training

institutions;


Reform Higher Education Financing;

Move increasingly towards post-secondary VET;

Integrate rather than separate, and take equity seriously.

Transfer more of the cost of post-secondary training to beneficiaries

Conclusion

Propositions and Principles imply:

– convergence between general and vocational education. – unified strategy for reform of upper secondary education as a

whole – Qualifications frameworks to smooth pathways from VE and

Secondary Education to Tertiary Education Competency based approach to education and training

Solutions to the Skills Gap:Re – focusing Education & Training

Dr Muriel DunbarDirectorEuropean Training Foundation

Europe’s challenge

1. Improve the quality and effectiveness of education and training systems in the EU

2. Make LLL accessible to everyone

3. Make our education and training systems more outward–looking as regards the rest of the world

I. Improve education for teachers and trainers

II. Develop skills for the knowledge society

III. Ensure access to ICTs for everyone

IV. Increase recruitment to scientific and technical studies

V. Make the best use of resources

i. Open learning environment

ii. Make learning more attractive

iii. Support active citizenship, and equal opportunities and social cohesion

Europe’s objectives

Ref. European Council adoption of

‘Report on the concrete future,

objectives of education systems’ 12.2.01

Strengthen links with working life & research, and society at large

Develop the spirit of enterprise

Improve foreign language learning

Increase mobility and exchanges

Strengthen European co-operation

Europe’s Initiatives

European Qualifications Framework (EQF)* European Credit Transfer in Vocational Education and

Training (ECVET) European Reference Framework for Key Competences

for LLL* Common Quality Assurance Framework (CQAF) Adult Learning European H.E. area ( Bologna Process) European Institute for Technology

Features of EQF

1. Encompasses all levels of education

2. 8 reference levels based on learning outcomes

3. A translation device to enable comparison between qualifications of different Member States

4. MS should relate their national qualifications systems to the EQF by 2009

Progress in EECA on NQFs

1. NQFs being developed throughout SEE

2. C. Asia and S.Caucasus: regional co-operation on development of a pilot qualification framework in tourism sector

3. Russia: qualification agency for VET being established at initiative of employers’ federation – draft NQF will follow

Key Competences for Lifelong Learning – a European Reference Framework

1) Communication in the mother tongue2) Communication in foreign languages3) Mathematical competence and basic

competences in science and technology

4) Digital competence5) Learning to Learn6) Social and civic competences7) Initiative and entrepreneurship8) Cultural awareness and expression

Research in Albania, Croatia, Macedonia, Montenegro and Serbia shows a shift is needed from teaching to learning:

• Lack of systematic support for development of key competences

• Changes to curriculum framework required

• Teaching content and environment need to change to allow for knowledge of a higher transfer value and for learning based on a high degree of learner activity and experience

• Formative assessment, self- and peer- evaluation gain in importance over summative assessment

• Challenge to teachers’ competences

Understanding the skills gap

In EECA

Labour Market reviews in

W. Balkans

Developing skills profiles of prospective

and returning migrants(Ukraine, Moldova,

Albania)

Analyses of Transition from

Education to Work (Ukraine & Serbia)

Analysis of Adult Learning challenges in SEE

Implementing the European Charter for Small Enterprises in W. Balkans 2007

Creating networks of 1) social partners2) Parliamentarians in W. Balkans

Progress on implementing the European Charter for Small Enterprises in W. Balkans 2007

Charter has 10 policy dimensions including:

1) Education & training for entrepreneurship4) Availability of skills

Progress report (2007):« The gap between skills supply and the skills required by the market is growing. The W.Balkans countries have not yet established systematic tracking of training requirements relative to market demand. Furthermore, the issue of quality assurance for the training provided has not been effectively addressed. With increasing evidence of the links between quality manpower and SME performance, there is a need to give futher impetus to training initiatives. »

Transition from Education to work

Objective:To develop tools to analyse the transition from education to work in transition countries in order to better understand the links between education, training and labour market integration of young people.

Results:a) A conceptual and analytical framework on transition from education

to workb) A methodology for a school – leaver survey for transition countriesc) An analysis of the transition from education to work in Serbia,

Ukraine and Egypt based on the analytical frameworkd) Results of school – leaver surveys in Serbia & Ukraine

Labour Market Reviews in W.Balkans

Main trends of structural change:1) Clear shift to services and de-industrialisation2) Increasing share of the private sector to both GDP and employment

as an outcome of privatisation and the entry of new private firms

Skills required and job creation will depend on:a) Continuation of the privatisation process and improved market

oriented behaviour of enterprisesb) The development of the SME sectorc) The countries’ capacities to attract FDI and facilitate technological

progressd) Countries trade patterns – from low-skill to high-skill sectore) Countries’ capacities to ensure balanced growth across regions

Interim results of project on Migration and Skills

Objective: investigate the link between migration and education and skills

General assessment:• Lack of data on migration and education• Lack of recognition of qualifications• Difficult to measure « brain-drain » impact • Skill shortages and oversupply as a result of migration not documented

End product « Country Migration Profile » including: • Profile of typical potential migrants and returned migrants by socio-

demographic data, education, skills, employment, income etc.

Recommendations for short-term measures to transform adult learning in SEE

1) An agreement within government of a timetable for increased resources to be spent on education and learning, specifying the share to be allocated to adult learning.

2) Establishment of a «Learning partnership » within government, bringing together relevant ministries and stakeholders.

3) Strengthening ministerial policy capacity to develop a comprehensive strategy for adult learning in consultation with key stakeholders.

4) Development of partnerships below national level.5) Capacity-building for ministries, social partners and other

stakeholders to engage in effective partnerships, using international experience and donor or expert assistance.

Networks in Western Balkans

1) Parliamentarians

2) Social partners• Attracting and retaining more people in employment • Investing in human capital through better education

and skills• Social inclusion

THANK YOU

For further information about the ETF please visit our website: www.etf.europa.eu

http://www.etf.europa.eu/

Knowledge and skills for competitiveness: The Finnish

model

PANEL 1BSolutions to the skills gap: Refocusing

education and trainingPasi Sahlberg

Competitive economy, well-performing education system

Economic competitiveness (2006/07)

1. Switzerland 2. Finland3. Sweden4. Denmark5. Singapore 6. USA7. Japan8. Germany9. The Netherlands10. UK11. Hong Kong12. Norway13. Taiwan14. Iceland15. Israel

Economic competitiveness (2006/07)

1. Switzerland 2. Finland3. Sweden4. Denmark5. Singapore 6. USA7. Japan8. Germany9. The Netherlands10. UK11. Hong Kong12. Norway13. Taiwan14. Iceland15. Israel

Student achievement in (PISA 2003)Mathematics1. Finland2. Korea3. The Netherlands4. Liechtenstein5. Japan6. Canada7. Belgium8. Macao-China9. Switzerland10. Australia11. New Zealand12. Czech Republic13. Iceland14. Denmark15. Sweden

Reading literacy1. Finland2. Korea3. Canada4. Australia5. Liechtenstein6. New Zealand7. Ireland8. Sweden9. The Netherlands10.Honk Kong-China11.UK12.Belgium13.Norway14.Switzerland15.Japan

Competitive economy, well-performing education system

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10111213141516

1998 1999 2000 2001 2002 2003 2004 2005

Inte

rnat

iona

l ran

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Competitiveness Index

Corruption Perception Index

Network Readiness Index

Progressive nation

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10111213141516

1998 1999 2000 2001 2002 2003 2004 2005

Inte

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l ran

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Competitiveness Index

Corruption Perception Index

Network Readiness IndexHuman capital

Progressive nation

Key elements of building knowledge and skills

Basic education- equal opportunities- same schooling for all- good teachers- creativity and identity- caring and guidance



Secondary education- choice- flexibility- lateral mobility- non-formal learning- career guidance




Higher education- high participation- building on solid base- cooperation and networking





Risk-taking, creativity and innovation





Risk-taking, creativity and innovation

Sustainable leadership

Education and training for skills development


• Building on solid ground



• Encouraging risk-taking, creativity and innovation




• Creating conditions for lateral capacity building




• Creating conditions for lateral capacity building

• Engaging the Third Sector in human resource development

Thank you!

Sahlberg, P. (2006) Education reform for raising economic competitiveness, Journal of Educational Change, 7(4), 259-287.

panel 1b solutions to the skills gap: refocusing education and training

Documents

provision of ve

general education

tertiary education

ve accounts

traditional ve system

subsidized ve system

fiscal efficiency

education policy worldwideve