DOCUMENT RESUME AUTHOR Descy, Pascaline; Tessaring, … · DOCUMENT RESUME. ED 455 415 CE 082 056. AUTHOR Descy,Pascaline; Tessaring, Manfred TITLE Training and Learning for Competence:

DOCUMENT RESUME

ED 455 415 CE 082 056

AUTHOR Descy, Pascaline; Tessaring, ManfredTITLE Training and Learning for Competence: Second Report on

Vocational Training Research in Europe. Executive Summary.CEDEFOP Reference Series.

INSTITUTION European Centre for the Development of Vocational Training,Thessaloniki (Greece).

REPORT NO TI-33-00-841-EN-CISBN ISBN-92-896-0020-9ISSN ISSN-1608-7089PUB DATE 2001-00-00

NOTE 52p.; For the related full report, see CE 082 008.AVAILABLE FROM CEDEFOP, P.O. Box 22427, Thessaloniki, GR-55102 Greece. Tel:

30 31 49 01 11, Fax: 30 31 49 01 02; e-mail:[email protected]; Web site:http://www.trainingvillage.gr/.

PUB TYPE Reports Research (143)

EDRS PRICE MF01/PC03 Plus Postage.DESCRIPTORS *Competence; Competency Based Education; Developed Nations;

*Education Work Relationship; Educational Finance;Educational Needs; Educational Research; EmploymentPatterns; *Employment Qualifications; Entrepreneurship;Equal Opportunities (Jobs); Foreign Countries; Futures (ofSociety); Global Approach; Job Skills; Job Training; LaborMarket; Lifelong Learning; Postsecondary Education;Secondary Education; Skill Analysis; *Skill Development;Student Certification; *Technical Education; *VocationalEducation

IDENTIFIERS *European Union; Training Needs

ABSTRACTThis six-part publication summarizes the main findings and

conclusions of the second report on vocational education and training (VET)research in Europe. Part 1, VET Systems, Coordination with the Labor Market,and Steering, covers education and training systems, including regulation,coordination, steering and cooperation, finance, certification, andprofessionalism. Part 2, Lifelong Learning and Competencies: Challenges andReforms, contains information on lifelong learning and competence, as well asdifferentiation in VET pathways and on-the-job training. Part 3, Training andEmployment in a Company Perspective, examines the skills needed in a globaleconomy, labor markets, the role of small and medium-sized enterprises intraining and employment, entrepreneurship, and skills and training needs.Part 4, Employment, Economic Performance, and Skill Mismatch, focuses onemployment in Europe, education, training, and economic performance, dynamicsof labor markets, and skill mismatches and future needs. Part 5, IndividualPerformance, Transition to Working Life and Social Exclusion, provides acontext for training and individual performance, the education workrelationship, and social exclusion and reintegration through training. Part6, VET Research Outside the European Union, profiles research in thecountries of central and eastern Europe as well as in other nonEuropean Unioncountries. An annex lists 31 bibliographic contributions to the background ofthe second research report. (KC)

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TR-Etnfing 2llad Ilearidng TOR° compete-XE

Second report on vocational training research in Europe: executive summary

Pascaline Descy

Manfred Tessaring

Cedefop Reference series

Luxembourg: Office for Official Publications of the European Communities, 2001

A great deal of additional information on the European Union is available on the Internet.It can be accessed through the Europa server (http://europa.eu.int).

Cataloguing data can be found at the end of this publication.

Luxembourg: Office for Official Publications of the European Communities, 2001.

ISBN 92-896-0020-9

CI European Communities, 2001Reproduction is authorised provided the source is acknowledged.

Printed in Italy

The European Centre for the Development of Vocational Training (Cedefop) established in 1975, pro-vides information and analyses of vocational education and training systems, policies and research.

Europe 123GR-570 01 Thessaloniki (Pylea)

Postal Address:PO Box 22427GR-55102 Thessaloniki

Tel. (30-31) 490 111Fax (30-31) 490 020E-mail: [email protected]: www.cedefop.eu.intInteractive website: www.trainingvillage.gr

Pascaline Descy, Manfred TessaringCedefop

The manuscript was completed in November 2000.

Acknowledgements:

The authors would like to express their gratitude to all researchers who contributed to the research report(see Annex). They are equally greatly indebted to all those who actively supported this publication, in par-ticular Johan van Rens, Stavros Stavrou and a number of Cedefop colleagues, Cedefop's ManagementBoard and colleagues from the European Commission.

We would also like to thank all those engaged in the organisation and preparation of this report,in particular:

Beatrice Herpin and Litza Papadimitriou-von Herff for their project organisation and editorial work;Silvia del Planta for her compilation of European research projects;Cedefop's translation service for the revisions and translations of the document;Cedefop's publication service for the preparation of the report for print.

Content

Introduction 3

Part oneVET systems, coordinationwith the labour market and steering 41. Education and training systems: regulation,

coordination, steering and cooperation 42. The financing of training 5

3. The standing of VET in comparison withgeneral education 7

4. Certification systems, assessmentand recognition of skills 8

5. VET professionals: changing roles,professionalisation and steering of systems 9

Part twoLifelong learning and competences: challengesand reforms 10

1. Lifelong learning: from the creationof a concept to a new educational paradigm 10

2. Competences, learning processes and didacticinnovations for new occupational profiles 12

3. Individualisation and differentiationof VET pathways 14

4. Learning in enterprise 15

Part threeTraining and employment in a companyperspective1. Skill needs in a global economy2. Internal, external and occupational labour

markets3. The role of SMEs in training

and employment

1616

16

18

4. Entrepreneurship and the Europeanemployment strategy 20

5. Developing and measuring human resources 236. Exploring skills and training needs

by enterprise surveys 24

Part fourEmployment, economic performance and skillmismatch 251. Employment in Europe 262. Education, training and economic

performance 263. Dynamics of labour markets and

competences 274. Skill mismatch in the labour market 285. Future skill requirements 31

Part fiveIndividual performance, transitionto working life and social exclusion 321. Training and individual performance 322. Transition from the education system to

working life 333. Social exclusion and reintegration

via training 36

Part sixVET research outside the European Union 391. VET research in the countries of central

and eastern Europe2. VET research in other non-EU countries 42

39

AnnexContributions to the backgroundreport of the 2" research report 44

Abbreviations

Country abbreviations

A AustriaAU Australia

BelgiumBG BulgariaCH SwitzerlandCA CanadaCZ Czech Republic

GermanyDK Denmark

SpainEE EstoniaEL GreeceEng EnglandEU European Union

FranceFIN FinlandGB Great BritainHU Hungary

ItalyIRL IrelandJP Japan

Luxembourg

LVLT

NLNZ

PLRO

ScoSKSLUKUS

LatviaLithuaniaNorwayNetherlandsNew ZealandPortugalPolandRomaniaSwedenScotlandSlovakiaSloveniaUnited KingdomUnited States of America

Frequently used abbreviations

(With a few exceptions no abbreviations arelisted here concerning institutions, organi-sations, projects, training programmes andthe like, in particular at national level.)

CEECs central and eastern Europeancountries

CVT continuing vocational training

CVTS

ET

EU

HRD

1CT

1SCED

IVT

(C) LFS

SME

TSER

VET vocational education andtraining

continuing vocational trainingsurvey

education and training

European Union

human resource development

information and communica-tion technologies

international standard classifi-cation of education

initial vocational training

(Community) labour forcesurvey

small and medium sizedenterprise

targeted socio-economicresearch (programme of theEuropean Commission)

1

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Cedefrop's reporthag serlies art VET research fura Europe

First research report

Cedefop, 1998. Vocational education and training the European research field. Background report 1998(2 volumes). Tessaring M., ed. Cedefop reference document; 2 Volumes. Luxembourg: EUR-OP. 352 pp.(Volume I), 321 pp. (Volume II) in English only

ISBN 92-828-3612-6 (Volume I + Volume II)

Price in Luxembourg (excluding VAT): EUR 19 (for Volume I + Volume II)

Tessaring M., 1998. Training for a changing society. A report on current vocational education and train-ing research in Europe 1998. Cedefop reference document (2"d edition 1999). Luxembourg: EUR-OP. 294pp. (also available in German, French and Spanish)

ISBN 92-828-3488-3 (EN)

Price in Luxembourg (excluding VAT): EUR 19

Second research report

Descy P., Tessaring M., (eds.), 2000. Training in Europe. Second report on vocational training research inEurope: background report. Cedefop Reference series; 3 Volumes. Luxembourg: EUR-OP. 430 pp. (Vol-ume 1), 610 pp. (Volume 2), 460 pp. (Volume 3)

ISBN 92-896-0034-0 (Volume 1 + 2 + 3)

Price in Luxembourg (excluding VAT): EUR 21 (for Volumes 1 + 2 + 3)

Descy P., Tessaring M., 2000. Training and learning for competence. Second report on current vocationaltraining research in Europe: synthesis report 2000. Cedefop Reference series. Luxembourg: EUR-OP. 441pp. (in the course of the year 2001 also available in German, French and Spanish)

ISBN 92-896-0029-2 (EN)

Price in Luxembourg (excluding VAT): EUR 19

Descy P., Tessaring M., 2000. Training and learning for competence. Second report on current vocationaltraining research in Europe: executive summary. Cedefop Reference series. Luxembourg: EUR-OP. ca. 45pp. Available free of charge in 11 EU languages.

ISBN 92-896-0020-9 (EN)

Price for the background report (3 Volumes) and the synthesis report (excluding VAT in Luxembourg):EUR 29.50

The research reports are available through the national EU sales offices only (see second last cover page).

Parts of the research report and this executive summary are also accessible through Cedefop's ElectronicTraining Village (www.trainingvillage.gr/etv/research/index.asp).

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7

Traftniing and [learning Tor competence:executiive summary

This publication summarises the main findings and conclusions of the second report on vocational educa-tion and training (VET) research in Europe 'Training and learning for competence' which is part of thereporting series Cedefop started in 1998. The aim of the reports is to give a comprehensive overview onthe state of the art of VET research in Europe, on the main theoretical and conceptual approaches, onempirical findings and to discuss implications for policy, research and practice.

The summary that you have before you attempts to provide an overview on the main topics, findings andconclusions presented in the second research report. Readers who are interested to gain deeper insightinto specific issues are invited to refer to the synthesis report and/or to the background report.

lIntroductiorra

Definition and role of vocational educationand trainingBroadly defined, vocational education and training(VET) comprises all more or less organised or structuredactivities whether or not they lead to a recognised qual-ification which aim to provide people with knowledge,skills and competences that are necessary and sufficientin order to perform a job or a set of jobs. Trainees in ini-tial or continuing training thus undertake work prepara-tion or adapt their skills to changing requirements.

VET is independent of its venue, of the age or othercharacteristics of participants, and of their previouslevel of qualification. The content of VET could be job-specific, directed to a broader range of jobs or occupa-tions, or a mixture of both; VET may also include gen-eral education elements. However, the definition ofVET and continuing training (CVT) in individual coun-tries is different.

Function and objectives of VET researchEducation and training policies, as with other policies,have to consider complex relationships between educa-tion and training and the socio-economic system. It is thetask of research to shed light on these aspects in order toanalyse, identify and explain these relationships, toimprove our understanding of causes and effects, and toidentify the means and strategies which are expected tobe effective and acceptable in solving a problem.

In particular VET research aims to:

(a) describe and explain the systems, conditions andframeworks for processes involved in acquiringand updating vocational skills and competences;

(b) provide information on the interactions betweenVET and other areas of social action. Those inter-actions concern the legal and institutional frame-work, interdependencies with social, economic,technological and demographic change and thebehaviour of the different actors in these fields;

(c) demonstrate its relevance to the option-seekingand decision-making of the various protagonists.

Reporting on VET research in EuropeThe reports on VET research in Europe published regu-larly by Cedefop intend to improve transparency on VETresearch issues in Europe, by pooling the findings of dif-ferent research disciplines and, at the same time, by prop-erly positioning other fields of social action in terms oftheir relationship to initial and continuing vocationaltraining. Furthermore, the reports indicate the implica-tions of research results for the various protagonists con-cerned politicians, institutions, social partners, enter-prises, individuals and draw attention to areas whereresearch coverage is too thin and needs building up.

The second research report builds upon the first editionpublished in 1998/99. Some topics have been devel-oped further, others have been updated to consider newresearch findings, and some have been introduced toreflect the current debate.

The second research report consistsof three publications(a) the executive summary that you have before you

which attempts to provide an overview on themain topics, findings and conclusions presentedin the second research report;

(b) a synthesis report which provides a comprehen-sive overview on the state of the art of VETresearch in Europe, on the main theoretical andconceptual approaches, empirical findings andimplications for decision-makers and researchers;

(c) a background report (3 volumes, effectively thebasis for the synthesis report) which contains con-tributions on different topics from renownedresearchers across Europe.

The list of contributions to the background report can befound in the Annex. Other bibliographical referenceswere not included in this summary. The reader may findall bibliographical references in the synthesis report.

3

Training and learning for competence

Part oneV T systems, coordfination wfitlthe Ilabour market and steerfing

Part one of the report examines the coordination,financing and steering of vocational education andtraining (VET) systems. After providing a generalreview of coordination principles and the playersinvolved, methods for financing initial vocationaleducation and training (IVT), continuing voca-tional training (CVT) and vocational training forthe unemployed are discussed. This Part of thereport goes on to examine the reforms that havebeen introduced to improve VET's standing, newmethods by which competences are being certified,and changes in the profiles of VET professionals.

1. Education and training systems:regulation, coordination, steeringand cooperation

The purpose of steering is to ensure that educa-tion and training systems adapt, and respond ade-quately to, the needs of individuals, the labourmarket and society as a whole. The main functionof coordination is to ensure a balance between theoccasionally conflicting interests of the variousplayers (State, employers and individuals).

In every country, VET has complex links with theeconomy, the labour market and employment.Moreover, its highly fragmented structure andmany specialisations make a coordination difficult.

State-managed planning and demand-led steeringby the market represent two opposite extremesamong the mechanisms by which VET systems canbe co-ordinated. Both types of steering are found inevery system in differing degrees. In practice,steering is based on both systems, but new co-ordi-nation methods also are explored, such as corpo-ratist steering or the use of networks.

o In the case of planned management, the pub-lic authorities are responsible for matching supplyto demand (from the point of view of both indi-viduals and the labour market) and for organisingtraining. State-led steering, through centralisedplanning, generally acts on the education supply.VET systems cannot, however, be steered solelyby a State system as it is impossible to forecastchanges in demand beyond a certain point.

o If labour market demand is used to steer thesystem, the following principles have to be

4

adopted: decentralisation, deregulation and dele-gation of authority. Market regulation is based onfeedback from VET users. The education andlabour markets are interdependent.

o The market-State dichotomy has long been(and often still is) seen as the crux of the debatesurrounding the methods of coordination betweeneducation and training systems. Every coordina-tion model, however, has its weaknesses. All par-ties therefore seek to reach the best possible com-promise one which would allow the system torespond to market demand while avoiding exces-sive bureaucracy, and permit the use of alternativesolutions, such as corporatist regulation or net-works (bringing together players with varyinginterests), in order to make the VET system moreflexible and improve its responsiveness.

Professional associations and the social partnersplay a coordinating role by bringing together play-ers who in principle share similar interests.Employers' associations, trade unions, associa-tions of teachers or parents, etc., thus provide abridge between the meso and macro levels,between the supply of, and demand for, training inthe VET system and between the supply of, anddemand for, skills and competences in the labourmarket (Figure 1).

Networks help maintain direct but informal linksbetween the different players. The good function-ing of a network is based more on trust than onfinancial interests or formal authority.

Systems are steered by choosing a strategy inkeeping with policy choices: distribution ofdecision-making powers (decentralisation,involvement of the social partners, etc.),changes to the structure of education and cur-riculum targets and adaptation of teachingand learning processes.

The choice of the steering system has to bebased on an analysis of weaknesses and bot-tlenecks so that appropriate solutions canthen be found.

Executive Summary

Figure Stylised coordination D2aD7© MCI qTgeP

VET systems

Demand for Supply ofeducation/training education/training

Labour marketSupply of

competencesDemand forqualifications

and competences

Macro level(national,regional, local)

Legislation, political parties

Actors in education/training

Students'/parents' Administrationorganisations Teachers'/trainers'

organisations

Actors in the labour market

Workers' Employers'organisations organisations

Meso level(organisational)

Students'/parents'representatives

Education/trainingproviders

Workers'representatives

Enterprises

Micro level(individual)

Individualhouseholds

Teachers,trainers, etc.

Individualemployees

Individualemployers

Source: Lassnigg, 2000. Steering, networking, and profiles of professionals in vocational educational and training. In: Descy P., Tes-saring M., eds., Training.in Europe, Vol. 1.

2. The financing of training'

Finance for initial vocational education andtraining (IVT) comes chiefly from the State(including regional authorities), with the excep-tion of apprenticeship, which receives substantialfinancing from enterprises. In many countries theIVT budget is increasing in real terms, thoughunit costs are in some cases decreasing.

Despite various innovations, the financing of IVTcontinues to be largely input-based.2 In anattempt, however, to reduce costs, criteria arebeing refined and more complex allocation crite-ria are being applied.

With the exception of the input-based model, whichis the most conventional and most widespread, allfinancing models (output-related financing, trainingvouchers, etc.) try, with varying degrees of success,to regulate service provision and to optimise certainfactors (efficiency, effectiveness, quality andequity). These aims are expected to become moreimportant: IVT budgets are increasingly tight as aresult of increases in other types of public expendi-ture, despite the fact that costs have levelled off.

The conclusions drawn in this chapter are based on ananalysis of VET financing systems in Austria, Denmark,France, Finland, the Netherlands, Sweden, the UnitedKingdom, Spain and Germany (Cedefop project).

2 Payment of a lump sum, calculated differently in eachcountry and taking certain variables into consideration:registration and participation, duration and nature of theprogramme.

The introduction of strategies of lifelong learningis enhancing the role of continuing vocationaltraining (CVT). CVT budgets have increased inmost countries (Table 1).

Enterprises bear most of the direct costs of CVT.However, public authorities would like privateinvestment (by both enterprises and individuals)to increase even further.

CVT financing mechanisms depend on the pre-ferred type of steering: state regulation, regulationthrough agreements between the social partnersor market regulation. These three types of mecha-nism form a continuum. All three are combined todifferent degrees in the countries examined; how-ever, one or the other tends to predominate and toinfluence the way in which finance is allocated.

It is necessary to introduce mechanisms to ensurethat continuing training opportunities andresources are equitably distributed between enter-prises especially SMEs sectors and individu-als, while taking care to tie the financing of train-ing to output. Competition between providersshould become a more important factor.

The sums channelled into training for the unem-ployed have evolved proportionally to the rate ofunemployment and continue to rise everywhereexcept the United Kingdom even where unem-ployment is levelling off or falling. This type ofVET is chiefly State-financed.

Various reforms have been introduced to maketraining for the unemployed more efficient. They

5


Ift1300 ih ehanges 10 @WO financing MCP@

Comparative financing level (1996-97)

_Country

Austria

Period(1st year = baseline 100)

1986-97

Publicexpenditure

188

Enterpriseexpenditure

-

Individual/householdexpenditure

-

Denmark 1985-96 263 162

England 1986/7-96/7 261 -

France 1987-96 174 187 206

Finland (5) 1986-96 - 143 700

Spain (b) 1995-96 142

Netherlands 1986-96 161 110

(a) Unlike other countries, Finland indexed all pre-1996 data to 1996 level.(b) Financing amounts based on the training levies collected from employers and employees, not including EU contributions.

Source: Elson-Rogers S., Westphalen S-A., 2000. Financing training in the European Union. Working paper. Cedefop. Thessaloniki.

can be grouped into three main categories: decen-tralisation to regional agencies and employmentagencies; more substantial government interven-tion as part of enhanced concerted action withregional and local players; and a tendencytowards the privatisation of services.

To sum up, governments are trying to introducemeasures that will make training more efficientwith a view to containing VET costs. Such meas-ures include decentralising regulation and financ-ing and introducing new resource allocationmethods, based on more precise measurements ofboth inputs and outputs. In some cases, thesemeasures are being accompanied by greaterautonomy for training institutions as well asgreater competition between providers.

Some innovations in the domain of financing con-cern the mechanisms of distribution of resources,e.g. output-related funding and training vouchers.

Output-related funding is an innovative approachwhich makes the allocation of all or part ofresources to institutions subject to the achieve-ment of various performance criteria rather thanjust input criteria (registration and participation,length and nature of programmes).

Output-related funding helps providers becomemore efficient by encouraging them to improvetheir policies and training services-and to opti-mise the uses to which their revenue is put. Pol-icy-makers can also use output-related funding as

a steering mechanism to achieve certain keyobjectives.

Despite its potential advantages in terms of steer-ing and efficiency, output-relating funding mayhave negative side effects. It may cause creamingoff of top students, distortion of the supplytowards programmes with a high success rate,oversimplification of content, increased evalua-tion and follow-up costs. It may also lowerassessment standards in order to boost successrates, and concentrate excessively on short-termresults.

Training vouchers make it possible to financetraining demand rather than training supply:recipients can redeem vouchers in the educationand training institution of their choice.

State-financed training vouchers have certain pri-ority objectives, such as: to stimulate the demandfor training by encouraging people to enter train-ing while allowing consumer choice; to improveaccess to private services; to ensure better quality(since people are aware of the value of the invest-ment they are making).

Training vouchers nevertheless require a highlyflexible system (organised for instance in the formof training modules), as well as guidance servicesin order to help individuals define appropriatetraining-paths. Training-vouchers- may, however,also cause dead-weight effects and high adminis-trative costs.

Executive Sutnmary

Innovations in the financing of training arestill limited in extent, and available data arevery incomplete; it is difficult, therefore, toassess their effectiveness and impact. Theexistence of more accurate data at bothnational and international level and a moresystematic exploration of the impact of newfinancing mechanisms would make it possi-ble appropriately to monitor VET expendi-ture and to evaluate innovations and institu-tional reforms. The quest for efficiency andeffectiveness also has to be underpinned bymore reliable measurements of the cost-bene-fit ratio of training.

3 The standing of VET in comparisonwith general education

The attractiveness of vocational training dependsto a large extent on its social standing and theopportunities that it offers on the labour market interms of employment, pay, career prospects andactual job content. The standing of VET varies indifferent countries.

o In countries where the educational system isclosely linked to the labour market (Germany, Aus-tria, Denmark, the Netherlands, the Czech Repub-lic, Hungary) increasing the prestige of VETrequires two things: on the one hand, improving thehigher-level career prospects of holders of generalor vocational secondary certificates; on the other,facilitating access to higher education for holdersof vocational training diplomas.

o In countries where links between the educa-tion system and the labour market are limited(Australia, Japan, Canada, United States), linksbetween the two systems need to be strengthenedin order to step up the involvement of employersin education and training: e.g. by creating school-enterprise partnerships, or systems of placementduring training.

o In systems where links between the educationsystem and the labour market vary in differentpathways (England, Estonia, Finland, France,Greece, Norway, Portugal, Scotland, Spain, andSweden), upper secondary education needs to beprovided with a coherent structure.

An analysis conducted in a number of countries(Austria, England, Finland, France, Norway,Scotland, Belgium, Estonia, Greece, Hungary andSpain) helped to identify four strategies for thereform of upper secondary education systems(Table 2).

RI lig & Strategies cit reform GO Wrg' Liii) uppersecondary edueation w5e6N 09 EOR 03 increasingW standing compared CC general education

Vocationalenhancement

Insists on the distinct nature ofVET, proposes specific curriculaand ensures a link betweenemployers and training providers(A, E, HU, EE)

Mutualenrichment

Aims at bringing closer all typesof school, in encouraging theircooperation but still preservingtheir distinctive character(FIN, N)

Linkages Implementation of a commonstructure of qualification,certification and recognitionallowing for placing VET andgeneral education on atheoretical equality level(Eng, F)

Unification VET and general education areunified in one system ofsecondary education, all youngpeople follow a common core ofstudy (Sco, S)

Source: Lasonen J., Manning S., 2000. How to improve the stand-ing of vocational compared to general education. A collaborativeinvestigation of strategies and qualifications across Europe. In:Descy P., Tessaring M., eds. Training in Europe, Vol. 1.

The strategy of vocational enhancement aims atpromoting the separate nature of VET, in whichspecific curricula are offered and links createdbetween employers and training providers (Aus-tria, Spain, Hungary, and Estonia).

Mutual enrichment aims to forge closer linksbetween all types of schools by encouraging themto cooperate while preserving their separatenature (Finland, Norway).

A linkage strategy involves the introduction of acommon qualification, certification and recogni-tion structure enabling VET and general educa-tion to be placed on a footing which is in theoryequal (England, France).

In the unification strategy, general and vocationaleducation channels are merged into a single uppersecondary system. All students therefore follow acommon core of teaching. This system ensuresmore equitable prospects of further study (Scot-land, Sweden).

All reform programmes may draw elements fromdifferent strategies and the directions taken bynational policy may change over time. Neverthe-

7

12


less all reforms have one point in common: theyrespond to, or anticipate, trends in the labour mar-ket and the organisation of work requiring quali-tative changes in knowledge and skills. The pur-pose of reforms is therefore to strengthen thelinks between the labour market and VET bymaking VET more responsive.

Dual qualifications are a further aspect ofreforms. They take the form of qualifications thatcan be used to enter both skilled employment andhigher education, especially university education.In all the countries in which they exist, dual qual-ifications are taught within school-based full-timeeducation.

Dual qualifications are more effective inpromoting the social standing of VET than tradi-tional pathways: they link the acquisition ofcompetences to personal development, facilitatemobility both in the education system and on thelabour market and make transitions betweeneducation and employment easier. This success isaccompanied, however, by fairly substantialcreaming off of the top students. Dual qualifica-tions therefore have to be an integral part of aflexible and transparent education system: it mustbe possible to gain access to these qualificationsfrom different vocational and general channels;they must provide access to further study inhigher education.

Whatever the strategy adopted, it is difficultto change the image of vocational trainingsystems which in many European countriesaccommodate pupils who have failed in gen-eral education. Substantial progress has,however, been made and VET is now beingrepositioned within education systems andwith respect to the labour market.

4. Certification systems, assessmentand recognition of skills

Our certification systems are changing. The abil-ity of conventional diplomas to reflect an individ-ual's competence is being called into question.New certification models are appearing, in partic-ular systems for validating non-formal learning.

In a labour market whose main feature is growingmobility, 'credentials' take on increasing intrinsicimportance. At the same time, a glut of diplomasis causing the demand for qualifications to riseeven further.

At present, certification is becoming a componentof training in its own right, and increasingly inde-pendent from training (what is termed 'autonomi-sation'). By looking for methods that are betterable to measure people's competences, the stressis placed more on people's ability to mobilisetheir competences and less on the way in whichthese competences have been acquired. Thisapproach is leading to new forms of recognition(especially for non-formal learning).

Introducing a strategy of lifelong learning makesit necessary to take account of alternative meth-ods by which competences can be acquired and todevelop links between the various stages of learn-ing at different times of life.

If the transparency of the skills certified and theirrelevance to the working world are factors offlexibility, their large-scale legitimacy requiresthe acceptance of standards. A balance thereforehas to be sought between a degree of precisionthrough which an individual's particular skills canbe readily identified and a wide enough degree ofgenerality to enable these skills to be recognisedin the broadest possible spectrum.

New certification models currently being pro-posed valorise alternative ways of acquiringknowledge, i.e. learning in working situations,during leisure time or in private life. Compe-tences are assessed regardless of the way inwhich they have been acquired.

The European countries can be grouped into fiveclusters depending on the importance they attachto non-formal learning, the institutional and/ormethodological initiatives they have taken andthe experiments they have launched.

(a) The first cluster includes Germany and Aus-tria. The attitude of these two countries towardsnon-formal learning can be described as cautious.There is no consensus among the various playersin training that new assessment methods areneeded. Experimental projects have, however,been launched.

(b) The second cluster includes the Mediter-ranean countries: Greece, Italy, Spain and Portu-gal. These countries do not have such a strongtradition of VET; as a result, non-formal learninghas become the dominant means by which skillsare reproduced and renewed. A range of method-ological and institutional responses has now beenintroduced. However, though both the public sec-tor and the-private sector have stressed the valueof recognising non-formal learning, not enoughpractical steps have been taken yet.

Executive Summary

(c) In the Nordic countries (Finland, Norway,Sweden and Denmark), there are two sub-groups.In Finland and Norway, non-formal learning is atthe forefront of discussions of education andtraining and is giving rise to far-reaching experi-ments and institutional reforms. In the other twocountries (Sweden and Denmark), interest in thisissue has up to now been limited.

(d) The fourth cluster reflects the influence ofNational Vocational Qualifications (NVQs) inmutual learning between countries. It includes theUnited Kingdom, Ireland and the Netherlands. Inthese Member States, the importance of learningoutside formal systems is recognised almostunanimously. Other countries are also trying toadopt a system based on the NVQ model (forinstance some of the Spanish autonomous com-munities).

(e) The criterion for the final cluster, includingBelgium and France, is more geographical.France has played a pioneering role in identify-ing, assessing and recognising non-formal corn-petences. But though the country has the longestand most extensive experience in this field, thesocial recognition accorded to such learning isstill limited. Belgium is still at an early stage ofdevelopment and has not yet decided on a clear-cut strategy.

Other initiatives at sectoral or branch level arehelping to make this issue more complex andwide-ranging.

The European Union (White Paper on teachingand learning, 1995, and programmes) has helpedto identify the issues more clearly and has sup-ported processes launched at national level. Inten-sive activity at national level is, however, moti-vated more by the practical challenges raised bythe creation of links between formal and non-for-mal learning than by a desire to create systemsthat are transparent and harmonised at Europeanlevel.

The various measures that have been introducedon a relatively large scale show that non-formallearning is still being treated as a sub-categoryof formal learning. The specific nature of thistype of learning, leading to specific compe-tences, has not as yet been recognised. This ispartly due to the fact that formal qualificationscontinue to underpin industrial relations in termsof job level attribution, pay scales and collectiveagreements.

While the reliability and validity of non-for-mal learning are ensured by technical andinstrumental criteria, legality and legitimacymust be ensured on a normative basis. Evenperfect methods are of no value unless theyare underpinned by an appropriate institu-tional and political framework. Though insti-tutional structures cannot provide the wholeanswer, this dimension should certainly notbe disregarded.

5. VET professionals: changing roles,professionalisation and steeringof systems

Changes in the roles of VET professionals arebeing shaped by three new aspects of the traininglandscape: the development of learning organisa-tions; the emphasis that is being placed on corn-petences and non-formal learning; and the impactof the new information and communication tech-nologies (ICTs).

The challenges that are facing VET seem to point tothe need for greater professionalisation among theplayers involved in training. The extent to which thisprofessionalisation can have an impact on the steer-ing of VET systems and the forging of closer linkswith the labour market also needs to be studied.

Stepping up educational qualifications is the tra-ditional approach to the professionalisation of thejobs of teachers and trainers, especially toimprove the role of instruction/facilitation. Theoutcome of this approach is progressively to alignthe function of VET teachers with that of teachersin general pathways.

The widespread dissemination of educationalknowledge must be accompanied by the introduc-tion of continuing training programmes, enablingprofessionals to prepare for new functions(administration, planning, research, etc.).

The very fragmented nature of the various groupsof professionals is accompanied by increasing con-vergence of their functions. Formal integration ofthe various groups may well prove difficult toachieve. However, alternative solutions can beexplored: developing common elements in IVT(level, method and content) and new functions(research, links between IVT and human resourcedevelopment HRD); stepping up cooperationwith the working world and the social partners; andintroducing learner-oriented programmes and richlearning environments, in particular in CVT.

9

14/


The range of tasks and functions of HRDmay provide a basis for the professionalisa-tion of the various players involved in train-ing. It could be envisaged to diversify therole of the groups of professionals distributedthroughout the various organisational spheresof training (education and workplace) inorder to enrich their functions as educatorsby those of HRD managers.

Part twoLfifellong [learning

and cornpetences: thallllengesand reforms

In this section, lifelong learning is addressed from apedagogic viewpoint. The various elements of thisstrategy are analysed: the competences to be devel-oped, the teaching and methods to be put in place,the reforms to be implemented in education andtraining systems to ensure that courses are individu-alised and flexible. Also analysed are new forms ofin-company competence acquisition in connectionwith the restructuring into learning organisations .

L Lifelong learning: from creationof a concept to a new educationalparadigm

In a society where globalisation, technicalprogress and communication technologies under-line the essential value of human capital , theadvent of the concept of lifelong learning goeshand in hand with growing awareness of theimportance of the processes of acquiring andupdating knowledge and competences.

The concept of lifelong learning emerged in the1 970s . At that time it focused on a vision of system-atic and institutionalised education and training.The value of competences acquired outside formalinstitutions received little recognition (except incertain countries, see for example the German dualsystem). Practitioners knew that it was not enoughsimply to extend traditional education throughoutlife, and that new methods would be needed; how-ever, there was a greater emphasis on the content oflearning than on the processes or the learner.

Since then, the labour market and education sys-tems have been affected by profound changes,associated in particular with socio-economic

change, technological advances and the demo-graphic trend. This resulted, amongst otherthings, in considerably increased participationrates of adults in training (Figure 2).

These changes have shown the importance ofemployability, which refers to the need to developand maintain workers' competences, equippingthem with the knowledge and capacities necessaryto stay in employment throughout their workinglives. To this end, individuals need to be empow-ered to ensure their own employability by becom-ing lifelong 'self-directed learners' . From the pointof view of employability, lifelong learning appearsto be a necessity and a right for all. The State andother institutions responsible for education andtraining should therefore provide appropriatelearning conditions and environments.

Setting out the central elements of the new con-cept of lifelong learning helps in identifying thechallenges facing States, education systems,enterprises and individuals.

(a) Initial education and training must ensurethat a minimum learning plaorm is guaranteed.Initial training appears to be a tool preparing indi-viduals to acquire an adequate level of employabil-ity and adaptability, by equipping them with thenecessary skills and competences to gear them-selves and adapt, throughout their lives, to changesin occupations and working environments.

The initial stage of education and training is cru-cial, since it represents a unique investment in theformation of competences on which individualscan rely throughout their lives. Young peoplemust be provided with at least a 'minimum edu-cation and training platform', composed of basicskills and key competences on which they canbase and build up their later learning.

(b) Enterprises and individuals play a key partin the strategy of lifelong learning. They mustinvest into developing their potential, supportedby public policies designed to create a favourableeconomic and social climate.

Increased investment in training depends on pri-vate initiative, including that of enterprises. Gov-ernments should therefore endeavour to encourageenterprises and individuals to invest in training.

Because of changes in the structure of trade sys-tems and of work organisation and because com-petition is becoming keener phenomena that areintensified by the rapid spread of new technolo-gies enterprises should be aware that theirsurvival and ability to compete depend on their

10

1 5

Executive Summary

Figure Participation lifelong education MC] training, selected countries, 994-95,

100

80

60

40

20

0 ,

3-5 6-7 8-12 13-15 16-18 19-21 22-24 25-29 30-34 35-39 40-44 45-49 50-54age

55-59 60-65

Participation in formale education (1995)

a Participation in education and adult training (1994-95) (b)

(a) % of each group participating in formal education (from 3-29 years), and participation in education and adult training (16-65years); non-weighted average of 9 countries (B, CA, IRL, NL, NZ, S, CH, UK, US).

(b) Except full-time students younger than 24 years.

Source: OECD, 1998. Education policy analysis. Paris: OECD (GERI).

constantly updating the competences of theiremployees through training.

(c) The identification, evaluation and recogni-tion of non-formal learning is a crucial stage inthe implementation of a strategy of lifelong learn-ing and training. It is becoming important to linktogether different forms of learning in all areas oflife (lifewide learning) at different points in life(lifelong learning).

(d) The change from instructionist education to aconstructivist approach, in which the individual isactive, and content is contextualised and based onproblem-solving, results in a complete redefinitionof the functions of teachers and trainers, both incompanies and in training establishments andschools. The didactic situation is less easily fore-seeable and incorporates practical dimensions to agreater extent, or indeed wholly. Previously thetemher/trainer taught, demonstrated, explained.Now, in the new forms of learning, his role is toadvice and structure the processes.

(e) Hence specific measures must address vari-ous disadvantaged groups, in order to prevent anyincrease in inequalities as regards access to edu-cation. These groups are, for example:

S

o young people who leave education withoutreaching upper secondary level;

o low-skilled workers;o older workers;o the unemployed or individuals at risk of unem-

ployment;o immigrants and ethnic minorities.

(f) Used as a didactic tool, information andcommunication technologies (ICTs) offer individ-uals a significant degree of flexibility (choice ofsubjects, learning times and methods, particularlywith the Internet). That is one of the reasons whye-learning is now one of the European Commis-sion's prime aims. However, ICTs may lead tonew forms of exclusion by penalising individualswith restricted access to these tools or lessfamiliar with these technologies (especially indi-viduals who have special educational needsand/or who come from underprivileged socialbackgrounds).

Institutional systems must be reformed so as tocreate or strengthen links between the various ele-ments of education systems and between learningand work (Table 3):


o horizontal links within the education system,establishing bridges between different educationand training routes to facilitate individual mobility;

O vertical links between initial and continuingeducation/training systems, to ensure ease of tran-sition between the two moments of competencesacquisition;

O links between education policies and labourmarket policies, with a view to increasing cooper-ation among the vaciQUS players (e.g. educationand employment ministers, the social partners);

o links between education system and productionsystem, to facilitate the transition between the two,to encourage training systems to be responsive, toincrease the awareness of enterprises on the longterm benefits of training and to help individuals tofamiliarise themselves with the world of work.

Ten years ago, the various elements of lifelonglearning were still being studied in isolation.Most countries now seem to opt for a moreholistic approach to this concept, designed tobring together both initial and continuing edu-cation and training and formal and non-formallearning within a cohesive system.

'OEC]lb g Reforms GO institutional settings fte algimplementation ca@ lifelong learning strategy

Type of links Objective pursuedto be developed

Horizontal links Facilitate mobility of individualwithin the through the creation ofeducation system pathways between the different

tracks of education and training

Vertical linksbetween initialand continuingeducation andtraining

Facilitate the transition betweenthe different moments ofcompetences acquisition

Links betweeneducation andlabour marketpolicies

Enhance the cooperationbetween the different actors(e.g. ministry of education andlabour, social partners) and thecoherence of policies andmeasures implemented

Links betweeneducation andproductionsystems

Facilitate the transition betweenthe two, stimulate theresponsiveness of educationsystems, raise the awareness ofenterprises on long-termbenefits of training and helpyoung people to familiarise withthe world of work

Source: Authors.

12

2. Competences, learning processesand didactic innovationsfor new occupational profiles

Job content is changing at an increasing rate,mainly because of two factors:

(a) the introduction of new technologies, whichput the emphasis on intellectual competencesrather than action-based skills;

(b) the expansion of new organisational para-digms, which establish new requirements asregards variety, flexibility and quality inoccupational practice.

The labour market is exhibiting contradictorydemands: employers are seeking individuals whowill be both highly adaptable (i.e. generalists) andimmediately operational (i.e. specialists).

Most people are likely to need to undergo trainingand to change jobs in the course of their workinglife; hence VET must equip them with a broad basisof technical, methodological, organisational, com-munication and learning competences. VET shouldalso provide specific skills to facilitate the transi-tion between the education system and employ-ment. To tackle this antagonism a redefinition ofvocational education would appear necessary, andthe concept of 'qualification' should be replaced bythe broader concept of 'competence' (Table 4).

Today, 'competence' has become a general-pur-pose term. It is used in various scientific disci-plines, but often with different connotations. Inthe context of employment, it is tending to sup-plant formal qualifications. In education andtraining, its acquisition is becoming the ultimateobjective. Competence is coming to the fore in acontext of socio-economic crisis and transforma-tion of work organisation, which in itself justifiesthe transition to a new management model. Anattempt is even being made to define the compe-tences individuals must have in order to take theirplace in our society.

In the field of vocational training and work analy-sis, skill has traditionally been regarded as some-thing highly specific, associated with a job. Tech-nical and social developments have stimulated aquest for transverse competences, in addition tospecialised skills.

In Europe, various models have been proposed toVET systems for adaptation of their content andcurricula. Two main trends can be identified:

(a) the approach promoting basic and genericskills;

Executive Summary

WI lg a ehangesgiC01 ROW technologiesorganisation

competences derivingEf54 @ay forms CO Mat

Old content New content

Based on Based on takingbehaviour, the initiativesuch as effortand discipline

Factorsof competence

Responsibility

Expertise Related toexperience

Cognitiveidentifying andsolving problems

Interdependence Sequential;hierarchic

Systemic; groupwork

Education andtraining

Acquired onceand for all

Continuous

Learning Passivebeing trained

Responsible forown learningself-learning,lifelong learning

Source: Green A., Wolf A., Leney T., 1999. Convergence anddivergence in European education and training systems. Insti-tute of Education. University of London: Bedford Way Papers,p. 128, adapted by the European Commission, Eurotecnetprogramme.

(b) the approach promoting transferable (key/core) competences and broad professionalcompetences.

The approach promoting basic and generic skillsis characteristic of the debate in English-speakingcountries, but it is also seen in certain other coun-tries, although to a less significant extent (DK, D,NL).

The skills whose acquisition is promoted in thisapproach are the general elementary and/or cogni-tive competences required for a whole series ofjobs, indeed all jobs: mathematics, reading, writ-ing, problem-solving, social, communication andinterpersonal competences. They are 'entryskills'.

The approach promoting transferable (key/core)and broad professional competences (dominatingfor example in Germany, Austria, and Denmark)is bastd on a collection of competences tran-scending divisions of labour and traditional occu-pational profiles. The competences cited aresocial and communication competences, andstrategic efficiency, in particular problem-solvingcompetences, organisational competences andleadership.

Definitions of skill/competence

Skill: the relevant knowledge and experienceneeded to perform a specific task or job and/or theproduct of education, training and experience which,together with relevant know-how, is characteristic oftechnical knowledge.

Competence: the proven and individual capacity touse know-how, skills, qualifications or knowledge inorder to meet both familiar and evolving occupa-tional situations and requirements.

Generic skills: the skills that support lifelong learn-ing, including not only literacy and numeracy (i.e.basic skills), but also communication skills, problem-solving skills, teamworking skills, decision-makingskills, creative thinking, computer skills and continu-ous learning skills.

Transferable competences: the competences indi-viduals have which are also relevant to jobs andoccupations others than the ones they currentlyhave or have recently had.

Key/core competences: the sets of skills which arecomplementary to basic and generic skills andwhich enable individuals

o to acquire new qualifications more easily;

o to adapt to changing technological or organisa-tional contexts; and/or

o to achieve mobility on the labour market, includ-ing by means of career development.

Sources: Bjornâvold J., Tissot P., 2000. Glossary on iden-tification, assessment and validation of qualifications andcompetences; transparency and transferability of qualifica-tions. Working document. Cedefop, Thessaloniki.

European Training Foundation, 1998b. Glossary of labourmarket terms and standard and curriculum developmentterms. Turin: ETF [online]. Available from the Internet:http://www.etf.it/etfweb.nsfl pages/downloadgen.

There is no fundamental difference between thesecompetences and those listed by supporters of thedevelopment of generic skills. It is because theyare regarded here as dependent on a context or arange of situations that the didactics for theiracquisition will be different.

Problems of occupational practice do not appearin isolation, but in bundles specific to each occu-pational group; these can be called occupationalcore problems. When they arise, the worker mustknowingly mobilise a collection of knowledgeand competences, in order to react appropriatelyand in good time. These problems are determi-nants vis-a-vis the work and efficiency of partic-ular groups of skilled workers. In order tobecome experienced skilled workers, beginnersmust prove their ability to deal with these prob-

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18


lems efficiently. The ability an individual demon-strates to resolve them determines his level ofexpertise.

During the learning process, learners can use theseproblems to acquire the key elements of the skillsand know-how required in their occupation, butalso to develop more general competences,namely problem-solving and meta-cognitive com-petences. The learner must face up to elements ofcomplexity, contradiction and uncertainty whichhelp to develop transferable competences.

Researchers and VET teachers seem to be dividednot so much on the subject of the kind ofskills/competences that enable individuals toadapt, but rather on the methods of acquiringthese skills/competences and on their applicationin appropriate occupational situations.

Some researchers believe that basic skills (read-ing, writing, mathematics) and generic skills(problem-solving, communication, learning tolearn) must be imparted. Others, while acknowl-edging the value of these competences, argue thatcompetences are context-dependent, and cannotbe developed outside it.

Teaching innovations based on each of thesetwo channels have been proposed. However,they all focus on autonomous learning andcompetences development via problem-solv-ing, and are based on more customised andactive teaching and pedagogy, as opposed totraditional teaching (traditional frontal learn-ing or simple copying of behaviour in theworkplace).

3. Individualisation and differentiationof VET pathways

In order to ensure varied, high-quality learningand implementation of a strategy of lifelonglearning, VET must, inter alia, adopt new flexiblemethods and facilitate increased individualisation.In this chapter national examples are given, sup-plemented by proposals for further reforms.

Several paths have been explored in Europe in thequest to achieve flexibility and individualisation:

o increased cohesion between initial and contin-uing education and training;

o increased modularisation of training pathways(facilitating a more flexible approach to corn-petences);

14

o creation of programmes combining vocationaland general qualifications (in particular, dualqualifications);

o expansion of the choices offered by trainingprogrammes (facilitating the development ofcustomised courses of personal and vocationaldevelopment).

These reforms are aimed at increasing the flexibilityand differentiation of VET; they are also designed toimprove its image and strengthen its position inrelation to general education (see above).

In the United Kingdom and the Netherlands, it isbelieved that customised lifelong learning neces-sitates gradual implementation of a modular sys-tem, which should also ensure that VET is moreresponsive to industrial change and createsbridges between VET and general education andbetween VET in a school environment and in theworkplace (alternance training).

In France, interchangeability of general andvocational education has been formally imple-mented. Flexibility has been increased via valida-tion of learning and vocational experience, whichenables credits to be built up. For example, thevocational baccalaureate (Bac pro) has been putin place, a dual qualification stream.

Germany has chosen to implement a policy ofinternal differentiation, to promote dynamism andflexibility within programmes. A second axis ofreform is designed to achieve greater customisa-tion of vocational qualifications and to ensure asmoother transition between initial and continu-ing vocational training.

In Denmark, all young people, including thoseparticipating in VET, are given a basis of generaleducation, facilitating increased mobility betweenpathways. A modular system has also been put inplace. Modularisation also promotes adaptation ofcurricula to meet the needs of particular targetgroups, thanks to the customised combination oflearning units.

Lifelong learning is furthered by putting inplace partial or full qualifications that areifiterchangeable, enabling individuals tomove between general education, initial andcontinuing vocational training, and highereducation, within a system which will nolonger be linear (with one stage following

--another)---but-will-support-transfers-between=different places and times of competencesacquisition, in an approach favouring compe-

Executive Summary

tences acquisition rather than an accumula-tion of qualifications.

VET will be made more attractive by theopportunity to obtain recognised supplemen-tary qualifications through continuing train-ing, and by the provision of continuing train-ing in higher education for VET qualifica-tions.

Consistent expansion of continuing trainingoptions in the workplace is also required.New forms of work organisation appear tooffer more opportunities for learning than didtraditional forms of division of labour.

4. Learning in enterprise

New models of work organisation are improvingthe opportunities for professionalisation andlearning. However, teaching incorporated into themodern work process is very different from peda-gogically organised teaching. In the most auda-cious scenarios, new forms of work are equiva-lent to new forms of learning.

Training associated with work must not berestricted to experimentation or on-the-jobtraining. Complete vocational competence cannotbe acquired solely through informal or non-formal learning, which constitutes a limited situ-ation from the cognitive point of view, since itdoes not provide for any reflexive return on theactivity. Forms of deliberate learning must beadded, to take the process beyond the level oftraining characterised solely by technical oreconomic objectives, and to encourage reflexive-ness and personal development on the part of thelearner (Table 5).

The forms of organisation and learning character-istic of modern industrial work processes can bedivided into two main categories:

(a) learning-organisation-type forms, in whichdeliberate learning and informal learning aresystematically combined, and which gobeyond the immediate necessities of the job;

(b) forms of work organisation in which compe-tences are acquired informally and throughexperience, and remain limited to the needsdictated by the work situation.

Forms of workplace learning which can beregarded as innovative go beyond informal learn-ing in the way in which they systematically com-bine learning and work.

Types experiential learning

Experiential learning

Informal learning involvesno organisation or formalframework. Its result becomesapparent without being sought.

Deliberate learningis learning intendedto achieve specificresults.

Experience-based learninginvolves aprocess ofreflection

Learning byimplicationtakes placewithoutreflection orunconsciously

Source: Dehnbos el P., Dybowski G., 2000. Company-basedlearning in the context of new forms of learning and differenti-ated training paths. In: Descy P., Tessaring M., eds. Training inEurope, Vol. 1, adapted by the authors.

A learning organisation is an enterprise whichmobilises its entire workforce in increasingorganisational and individual efficiency, throughcontinuous deliberation on the way in whichstrategic and everyday tasks are carried out andby creating a learning conducive environment.Thus the work content becomes the learning con-tent. Together, the two become elements of a spi-ral of continuous improvement.

Implementation of forms of learning incorporatedinto the work process and of self-directed learningalso fulfils economic objectives; it is associatedwith restructuring of enterprise organisation. Theseinitiatives lead to the creation of new trainingprospects and thus fulfil both economic and educa-tional objectives by contributing to:

o the relevance of contents;

o increased prospects of personal developmentand individual autonomy;

o optimisation of productivity and performance;

o understanding of organisational reforms by allthose involved;

o the acquisition of competences appropriate tofuture labour market requirements.

Learning within the modern work process offersa series of benefits as regards guidance andmotivation; it also ensures a direct link betweenthe acquisition of knowledge and its practicalimplementation. However, this form of organisa-tion has not inconsiderable implications for thefunctions and tasks of those responsible fortraining and development of human resources,and for any worker who acts as a trainer at somepoint.

2015


Recognition of the constructive nature oflearning and strengthening of its links with thework process modify the trainer's conditionsand methods of intervention. Within the learn-ing organisation, where workplace and learn-ing merge together, his function moves in thedirection of coordination. Within this frame-work, in addition to his traditional functionsthe trainer acts as foreman, spokesperson,project manager, quality assessor, etc., aprocess also broached in the context of thenew roles of VET professionals above.

Part threeTraillfmg and emplloymentin a company perspective

The third Part of the report focuses on companiesand their role in training and employment. After ananalysis of the possible impacts of globalisation onwork organisation and skills, the structures and thefunctioning of internal and occupational labourmarkets and their effects on skill acquisition andutilisation are discussed. Research into SMEs, self-employment and entrepreneurship, and the impli-cations for growth, job creation and enrichment ofskills, are presented thereafter. Approaches todevelop and measure human resources at companylevel, and the potential of enterprise surveys as acomplement to labour force surveys, are furtherissues discussed in this Part.

1. Skill needs in a global economy

There is no clear or simple relationship between`globalisation', the division of labour and com-pany training needs. Changes in the division oflabour are increasingly attributed to the process ofglobalisation which is expected to place newdemands for skills, competences and work atti-tudes on employees.

Decreasing site-specificity and temporal con-straints on the production of goods and servicesestablish new competition criteria for globalisedmarkets. In order to meet these criteria, firmsreorganise production and work processes andworkers have to face new skill requirements.However, empirical evidence on new productionconcepts is not always clear but shows a broadrange of organisational choice between more tra-

16

ditional, 'neo-Tayloristic' and new organisationalapproaches.

Production intelligence a combination of theo-retical, experiential, systemic, digital and workprocess knowledge as well as international,managerial and social competences will clearlygain in importance. However, it would be an illu-sion to believe that every job involves an equallyhigh degree of these new competences. Globalisa-tion in combination with new ICTs sometimesalso results in work that reduces skill require-ments to a minimum. Furthermore, it is hard tobelieve that every worker is able to meet new andever-increasing job requirements.

Thus, a general trend towards a 'rehabilitation' ofwork is not always visible. Instead, and rein-forced by globalisation, there is also a tendencyof polarisation with skill-intensive jobs on theone hand and less information and knowledge-intensive jobs on the other.

This implies a major challenge for VET systems.Training should contribute to avoiding the exclu-sion of those falling out of the upper and interme-diate segments of skilled personnel. Within thevocational training system, ICT-applications, andthe resulting qualification needs (e.g. `e-learning'),should receive major attention. Furthermore, theICT-sector itself faces quantitative as well as qual-itative skill shortages. Vocational training shouldcontribute to reducing at least the qualitative ones.

The widespread use of modern ICTs not onlycreates additional qualifications and trainingneeds, but has also impacts on the delivery oftraining, e.g. through the provision of openlearning centres, distant and self-directedlearning and the delivery of learning to peoplewho are unable to attend classes regularly. Inthis sense, `globalisation' could be positivelyused to enhance and complement the skillsneeded in a global society (Table 6).

2 Internal, external and occupationallabour markets

Debates on the contribution of training to eco-nomic growth and employment touch upon publicpolicies and the roles of enterprises and individu-als concerning the creation and accumulation ofhuman capital. Questions focus on the structure,functioning and mobility of internal, external andoccupational labour markets as well as theirimplications for skill acquisition and utilisation.

Executive Summary

ItL09 (3,s. Knowledge cod dttIO; needed COD aG global economy

Knowledge and skills Underlying cause

Knowledge

Theoretical knowledge Work as a process of problem-solving

Technical (digital) knowledge Introduction of modern ICTs

Practical, work process knowledge Increased uncertainty, risk situations caused by technical integration

Skills and competences

Professional skills, multiskilling Integration of tasks, de-specialisation, group work

International skills Globalisation of markets and production

Social skills Direct interaction within and between work groups, customisation,direct interaction with suppliers

Management skills Flat hierarchies, decentralisation, increased information exchange

Work orientations

Quality consciousness, reliability Quality and time as key aspects of global competition

Creativity, entrepreneurship Innovativeness as key element of global competition

Leadership Coordination of autonomous work groups

New work virtues Commitment, trust, industrial citizenship

Source: Schienstock G. et al., 1999. Information society, work and the generation of new forms of social exclusion (Sowing): Litera-ture review. Tampere: University of Tampere, Work Research Centre, p. 83.

Research into internal and occupational labour mar-kets indicates that the choice of a societal model,and the resulting wage-labour nexus, differs acrossEuropean countries. Economic approaches basedon neo-classical and human capital theory are dis-puted, as are sociological ones based on dual labourmarket and segmentation theories.

All these models are only partly able to explainthe wage-labour and, in consequence, the skill-labour nexus, i.e. the role of different actors (indi-viduals, employers, social partners, training insti-tutions, State) in linking the labour market andeducation/training system.

Up to now, empirical evidence of the interplaybetween all types of labour markets external,internal and occupational and their links to edu-cation, training and skills have been rather scarce.Longitudinal analyses, combining both individu-als and firms, are at an early stage. Such analysesshould include institutional characteristics and theinfluence of other actors on the modalities of in-company training and deployment (Table 7).

They should also be able to answer the questionof whether, and by which means, disadvantages in

education, training and early work career can becompensated for by continuing training or tar-geted programmes in later working life.

Societal models and approaches up to now havetended to focus on the links between training,occupational relations and personnel management.Most of them are content with a description ofstructural characteristics, assuming a stable world.

However, the relationships between training,mobility and wages/career are varying: they differby type of labour markets, by time, country andregion. A similar situation applies with regard topolicies concerning the competitiveness of firms,internal and external flexibility, the battle againstsocial exclusion and new combinations of train-ing and work.

'Shocks' such as the opening of Europe,globalisation, educational expansion, chang-ina work organisations etc. should stimulatedynamic models thus changing the viewfrom a mere description of societal spaces toan analysis of the modalities of transforma-tion (or perseverance).

17

22


itirib V g giff135g62(?Mq3 CV occupational aioc9 internal labour markets

Function Occupational labour market

apprenticeship

Internal labour market

experience acquired within theenterprise

Training

Nature of training in the courseof working life

standardised according to the principlesof the occupation

not standardised, specific to theenterprise concerned

Transferability of qualification within the scale of the occupation within the enterprise

Tenure no recognised role in terms ofacquisition of skills or of earnings

strong influence of skill acquisitionand earnings

Level of qualification whenchanging the enterprise

maintenance of the qualification level downgrading

Control of the work content based on the defence of the occupation based on a system of rules whichapply to all workers in the enterprise(e.g. classification systems)

Organisation of workers based on occupational affiliation based on the enterprise or sector

Principle object of flexibilitynegotiations

demarcation rules between jobs general rules applying to the wholeworkforce

Sources: Eyraud J.-F., Marsden D., Silvestre J-J., 1990. Marche professionnel et marche interne du travail en Grande-Bretagne eten France. Revue internationale du travail, 4, pp. 551-569; Hanchane S., Méhaut P., 2000. Training, mobility and regulation of thewage relationship: specific and transversal forms. In: Descy P., Tessaring M., eds. Training in Europe, Vol. 2.

Equally, comparative studies based on inter-disciplinary approaches and using both quan-titative and qualitative information in par-ticular at the enterprise level are researchtopics that need significantly more attention.

3. The role of SMEs in trainingand employment

Today, small and medium sized enterprises(SMEs) are regarded as the main source of eco-nomic development, innovation and creation ofemployment. Empirical evidence confirms thedecisive role of SMEs for growth and employ-ment: 99,8% of all enterprises in Europe have lessthan 250 employees and SMEs employ the major-ity of the European workforce (Table 8).

Independent and family businesses still form themajority of small firms, in particular in southernEurope. However, there is a trend towards moredependence (or to interdependencies) on otherSMEs or large firms coincident with a shift fromthe owner-entrepreneur to the manager of a smallor medium firm and their different strategies, e.g.in terms of long-term or shorter-term perform-ance. This shift also has an impact on the training,recruitment and employment policies of firms.

18

Ufe11013g Enterprises EDI employrnent(a)OE Europe J994l96,

Size(number of

Enterprises Employment

employees) (1996) (1994)

0-9 93.0 27.5

10-49 5.9 15.3

50-249 0.9 11.1

0-249 (SMEs) 99.8 53.9

250+ 0.2 46.1

Total 100.0 100.0

(a) Without agriculture (note: agriculture accounts for 5.4 %of the total European labour force).

Sources: enterprises: Trouve P. et al., 2000. The employmentand training practices of SMEs. Examination of research infive EU Member States. In: Descy P., Tessaring M., eds. Train-ing in Europe, Vol. 2, based on ENSR (1997, p. 326, withoutagriculture and non-market sectors); employment: EuropeanCommission, 1998. Employment in Europe 1998. Luxem-bourg: EUR-OP (figure 117, based on 'Enterprises in Europe'and on the Community labour force survey; without agricultureand household services, incl. energy).

Although SME research has a long history in somecountries, it was not until the 1980s that econo-mists and sociologists rediscovered SMEs. Thedecline of mass production, decentralisation, ter-

Executive Summary

tiarisation of economies and persistent unemploy-ment emphasised the flexibility of small structureswhich are expected to improve innovation, com-petitiveness and responsiveness to changing mar-kets. However, the specificity and, at the sametime, diversity of SMEs even more in a Europeancontext impedes a coherent analysis of the role ofSMEs in training and employment creation.

Research has developed a multiplicity ofapproaches reflecting different definitions, eco-nomic weight and historical development of SMEsin European countries. Until the recent past, withthe exception of Italy and Germany, however, SMEshave not been an autonomous object of research.

In contrast, SMEs are of increasing interest tonational and transnational policies, in terms of mod-ernisation, innovation and development of humanresources. The reasons are obvious: the growth ofservices and business restructuring in large firms;the crisis of large concentrations; and the advan-tages of small flexible units. Above all, SMEs areseen as 'carriers of hope' in the battle against unem-ployment and to foster economic dynamism.

In this context, much research work on SMEshas been devoted to manufacturing sectors,but too little to services and international com-parisons. Research should focus much more

on the key sectors of employment creation,e.g. business and personal services, recre-ation/tourism, hotels and restaurants, health,education etc. and the skills needed there.

The link between enterprise creation and employ-ment creation is not always evident. Rapidproduction and employment growth among SMEsis a phenomenon which applies to a relativelysmall number of 'high-flying' and fast growingsmall businesses only. Most of these highlyperforming SMEs are to be found in the servicessectors and employ, in particular if they havesurpassed the threshold from a micro to a smallsized enterprise, an equal proportion of highlyskilled workers as larger firms. Micro firms, onthe other hand, above average employ workers (inparticular women) at lower and medium skilllevel (Table 9).

SMEs create employment but they also destroyjobs. Schumpeter's 'creative destruction' withappearance and disappearance of firms and jobsin the market is an essential element of economicdynamism, of contribution to structural changeand to the reactivation of labour markets. Butfluctuation may also reinforce job precariousnessand may prevent workers and firms from an opti-mal investment in human resources.

7tij2 gtg L(XGO a education

Educationlevel

_(ISCED)

persons employed Cv sectoro) ENO Ig Eg AEe@o §1944

Firm size (number of employees)

ig04 %

1-10 11-49 50+ 1-10 11-49 50+

All sectors

Males

Services

High 18.1 21.4 27.9 34.5 37.3 39.9

Medium 42.3 47.5 45.2 39.6 38.9 37.7

Low 39.6 31.1 26.9 25.9 23.8 22.4

All levels 100.0 100.0 100.0 100.0 100.0 100.0

Females

High 17.2 24.3 24.9 28.0 35.5 35.0

Medium 44.5 44.8 45.1 46.5 39.8 42.1

Low 38.3 30.8 30.0 25.5 24.7 22.9

All levels 100.0 100.0 100.0 100.0 100.0 100.0

(a) Without agriculture.(b) High: ISCED 5-7; Medium: ISCED 3; Low: ISCED 0-2.

Source: Eurostat (European Commission, 1998. Enterprises in Europe. Fifth report- Data 1994-1995. Luxembourg: EUR-OP, p. 105).

Ot 19


Political support of enterprise start-ups facesthe problem of targeting the measures. Howto identify early the best performing SMEswhich create the most jobs? And should pol-icy also focus on job quality in terms of sta-bility, durability of jobs and working condi-tions?

Numerous difficulties arise when trying to meas-ure the specific contribution of SMEs to employ-ment growth not only because of the ongoingeconomic transformations but also because theterms 'creation' and 'employment' are themselvesblurred.

These problems also concern the appropriatemethod of analysis, e.g. the distinction betweenstocks and flows, gross and net job creation, andthe use of cross section or longitudinal data.Another question to be answered is to what extentjob growth is endogenous, i.e. induced by the cre-ation of enterprises and their subsequent develop-ment, or to what extent it is exogenous, for exam-ple the result of the outsourcing practices of largefirms? This also affects the skill needs and differ-ent training strategies of SMEs.

In view of the diversity of SMEs and theiranchorage in specific environments, research con-centrated on the evaluation of impact of trainingand employment practices of SMEs (Figure 3).

Research has shown, for example:

o in initial training, SMEs absorb the majorityof young people in Europe, in particular throughapprenticeship training. Although some smallfirms recruit higher skilled young people, themajority of SMEs, however, is characterised bylower skilled and precarious jobs. This is one rea-son why a substantial number of young peopleleave small enterprises after training;

o the engagement of SMEs in continuing voca-tional training lags considerably behind that oflarge firms. CVT provision also depends on thestrategic orientation and profile of the owner-man-ager. In most cases, CVT serves the adaptation ofskills to short term demand, and is primarily doneon-the-job and informally. However, high-tech ormanager-run small firms in particular, increasinglyrely on formal CVT measures or on cooperation,networks, external training institutions or on newforms of training supported by ICTs;

With regard to political measures to support CVTin small firms, European countries pursue differ-ent approaches, ranging from legal obligations of

20

FigureeiRcg

Vlbg ocOgcontinuing

employersvocational training

OROM

Role of the in continuing vocational trainingemployer

poor medium strong

poor Spain Belgium Finland,weight Sweden

littleformalised

Italy,Greece,Portugal

UnitedKingdom

minorityand institu-tionalised

Ireland, FranceLuxembourg,Netherlands

dominantand institu-tionalised

Germany, DenmarkAustria

Source: Aventur F., Campo C., Mobus M., 1999, Les facteursde developpement de la formation continue dans l'Europe desquinze. Cereq BREF, n° 150, fevrier.

firms to laisser-faire approaches towards employ-ers. Other countries have established a series ofintermediary regulations within collective agree-ments or in cooperation with the social partners.

Recruitment and personnel policies in SMEsare often affected by the absence of a longerterm personnel planning, by short term recruit-ment decisions reflecting temporary demandand by informal selection procedures. How-ever, since SMEs train more young people,employ more former unemployed (and mostlyolder) people and more family members thanlarge firms, they can function as 'transitionallabour markets' between training, employ-ment, unemployment and housework.

More research efforts are needed, taking intoaccount regional aspects and the diversification ofSMEs which should be reflected by appropriatepolicy measures.

4. Entrepreneurship and the Europeanemployment strategy

Entrepreneurs are commonly seen as 'agents ofchange and growth'. The conditions for starting-up a business, for its survival, and the contribu-tion of new firms (mostly SMEs) to growth andemployment are, however, not always clear.

25

Executive Summary

Most research today emphasises the 'social capi-tal' of the entrepreneur. In this context four cate-gories of entrepreneurs, with partly different busi-ness, employment and training strategies, can bedistinguished:

(a) descendants of entrepreneurial milieu;

(b) entrepreneurs by compulsion;

(c) entrepreneurs by adaptation (e.g. because ofunemployment or precarious employment);

(d) entrepreneurs by seizing an opportunity.

A large research body exists on the mechanismsof business start-up and the links to the labourmarket. Increasing unemployment may 'push'people to start a business. A new demand forgoods and services may 'pull' the creation of newfirms. However, concerning the push factor, littleempirical evidence is found. This seems toconfirm the importance of pull-driven businesscreation.

Research has elaborated a complex vision ofenterprise survival and related employmenteffects. In general, the survival rate five yearsafter business start-up in Europe and the USranges between 50% and 60%, with variations bysector, region and country. Rapid growth of anewly-created enterprise is an exception.

The survival process is, however, more complexthan often assumed. Closures are not always asign of 'failure' but often are done because ofmore favourable alternatives for the founder, andmany other closures are made without financialloss. Consequently, the equation of 'closure' and'failure' is not always meaningful.

The notion of innovation is even more unclear.SMEs are, in general, no more innovative thanlarge enterprises. Even among the fast growingSMEs, only certain ones exhibit superiorproductivity or realise innovative activities.There is no technological determinism,although, in the first period after start-up, a posi-tive relationship can be found between innova-tion and survival.

In many cases neither technology nor innovationconstitute a distinctive advantage. More impor-tant determinants are the specific position in themarket, and within the value added chain, territo-rial anchorage, innovative milieus and contactswith universities or research institutes. If newenterprises enter into established markets theirsurvival is difficult and their independence maybe threatened.

Public support today not only includesfinancial aids and the imparting of humancapital, but also attempts to stimulate aspirit of enterprise or an 'entrepreneurialculture' by lowering labour costs andcharges or by removing administrative andfiscal barriers. However, undifferentiatedsupport measures may not solve unequaldevelopments and imbalances in social andgeographic terms, and thus may not lead tomajor job creation.

Research and policy is increasingly interested inself-employment as a source of job creation andalternative to dependent work or unemployment.The questions arising here are closely associatedwith the issues of SMEs and entrepreneurship.

Access to this research field is, however, difficult,given the heterogeneity of self-employment (e.g.agriculture, liberal professions, 'quasi self-employed') and different legal and fiscal defini-tions of self-employment across countries.

The process of acquiring independence has beenencouraged and promoted by public supportmeasures for the unemployed, people at risk andfor women. The intentions were, not least, to fos-ter innovation and economic growth, to createjobs and to reduce unemployment.

However, according to Eurostat and OECD data,a close relationship between these factors cannotbe found for most countries at the macro level(Figure 4).

Most industrial countries have established pro-grammes for the unemployed, in particular the long-term unemployed, to become self-employed, withsome degree of success. However, their intensity andsuccess varies. Participation rates in these measureshave been rather low and there are some dead-weighteffects in that unemployed people are supported whointended to become self-employed anyway.

An emerging sector with close links to SMEs andentrepreneurship is the 'new social economy' , i.e.the non-profit sector between the State and themarket. Entrepreneurs of social enterprisescombine economic and social objectives and thusdiffer substantially from the classical notion ofentrepreneurs in Schumpeter's sense. Socialenterprises meet needs that are not, or onlypartly, met by the public sector or the market.Most of these organisations have a social objec-tive, e.g. to help low skilled or unemployedpeople back into work, to become self-employed

21


Figure Self-employment, unemployment, growth EDI ViiitmuaM0205 selected countries

Inventiveness50

45

40

30

25

20 7-------

1

---

15

10

5

_

,, .7-7----', -

GDPgrowthx 10

Unemployment

D FIN usUK Self-employment

DKNL

P

Self-employment: non-agricultural self-employment 1994 in % of civilian labour force;Inventiveness: resident patent applications 1994 per 100 000 population;GDP growth: average growth of the gross domestic product (%) 1990-97 (for better illustration multiplied by the factor 10);Unemployment: unemployment rate 1995 (%); countries sorted by inventiveness coefficient.

Sources: OECD, 1998. Fostering entrepreneurship. The OECD Jobs Strategy. Paris: OECD; European Commission, 1998. Employ-ment in Europe 1998. Luxembourg: EUR-OP.

or, more generally, to foster local and regionaldevelopment.

A growing number of cooperatives, associationsand consumer organisations are being establishedwith the aim of social integration through work,at local levels and often also linked with environ-mental objectives. In this way, social enterpriseshave absorbed a number of functions from thepublic sector, which is more and more withdraw-ing from certain areas of social life.

Increasingly, research efforts are devoted to inves-tigating the links between the training and per-formance of entrepreneurs, in terms of survival,profitability, growth and employment creation.

Most studies indicate that technological know how,high qualifications and specific knowledge of thebusiness segment is a condition sine qua non forsuccess. This includes knowledge of local marketsand integration in networks with other firms and/orwith universities and research institutes.

This calls for a targeted supportive policy whichattaches information, advice, training andmentoring an equal importance as access to (risk)capital and the removal of legal and administra-tive barriers. Taylor-made advice and trainingprogrammes are nowadays an integrated elementin almost all European programmes promotingentrepreneurship.

22

Executive Summary

From an education and training point ofview, however, entrepreneurship and inde-pendence should be imparted much earlier, incompulsory schools and initial training. 'Toact independently' becomes a key compe-tence in all spheres of working life. Thisapplies not only to potential entrepreneursbut to all workers who are expected to inde-pendently plan, perform and control theirwork. New work organisations, plus thechanging expectations and objectives of indi-viduals concerning their work, career and lifebiography, make them 'entrepreneurs of theirown work capacity'.

The basis fOr independence should already be laidin compulsory schools. Planning and performingsmall projects, in teams and with changing roles,could be initial steps. This type of project peda-gogy is also one of the most useful for the acqui-sition of key qualifications and social compe-tences.

Before entry into vocational training, contacts tothe world of work could be established and inten-sified. The aim would be to learn to act independ-ently, to gain self-confidence and social compe-tences, and to gather first impressions of theworld of work.

At later age, the option 'entrepreneurship' couldbecome an occupational goal in its own right.European countries have developed a broadrange of related activities, e.g. business simula-tion, team work projects, mapping exercises orrole games, learning offices, model projects andthe like. At this age, the internal and externalaspects of entrepreneurship should be furtheredby constructive not instructive learning andby experiential learning outside the classroomin order to develop creativity, motivation,initiative, self-confidence, risk-taking andcooperation.

In most countries, the concrete advice, support andtraining of the potential business starter is prima-rily done within higher education or continuingtraining measures. Many of these measures aresupported by the European Commission, in partic-ular in the framework of the European social andregional funds. In general, the objectives of theseprogrammes are changing from more general andunspecific to targeted measures.

The following aims which are partly overlap-ping can be distinguished:

(a) promotion of entrepreneurship in innovativeand high-tech areas, particularly in the serv-ices sector;

(b) promotion of young adults, of women, oflong-term unemployed;

(c) promotion of the disadvantaged includingimmigrants;

(d) promotion of the environment for start-ups,for example by science parks, technologycentres, mentoring, business angels, incuba-tors, one-and-first-stop shops, etc.

5. Developing and measuring humanresources

'Human resource development' refers to theactivation and development of knowledge andskills in companies. The values and policiesunderlying a humanistic 'European' working lifeand education and training culture are contrastedby a competing instrumental model of 'humanresource management' , inspired by neo-Tayloristic work organisation principles and.neo-liberal economics in which people are seenas 'resources' in the sense of being utilised toincrease productivity and economic performanceof the firm.

This raises the question of the future role of'human resource development' policies in a Euro-pean context.

The challenge of globalisation emphasisesthe building of societal frameworks whichfocus on new forms of inter-organisationalcooperation and alliances between enter-prises and knowledge producers. In this view,the neo-liberal solution must give way to thepromotion of learning by people, firms andregions and to creating appropriate learningenvironments.

Closely connected with, and even a prerequisitefor, human resource development is the measure-ment of a firm's human capital, i.e. the knowledge,skills, competences and other attributes embodiedin individuals. Human capital reporting is aboutmeasuring values and processes related to theacquisition, development and dissemination ofknowledge.

23


With the increasing importance of knowledge asan intangible asset, reporting on human capital isseen as a method for estimating enterprises' per-formance as well as future strategies. This hasbecome a constituent factor in most strategicmanagement tools developed in recent years.However, this issue is still subject to a highdegree of indecisiveness.

New approaches combining reporting on, andmanagement of, enterprises' human capital areemerging. They focus either on specific elementsor on the totality of elements constituting humancapital and its utilisation.

For a number of reasons enterprises show a grow-ing interest in human capital reporting (Table 10).Although still primarily occupied with the inputside (costs), some programmes evaluate the returnside (benefits) based on a standardised frame-work. Enterprises are increasingly operating withalternative internal and external reporting sys-tems. A common human capital reporting method,however, has so far not manifested itself.

International organisations and most national gov-ernments have not yet expressed a clear standpointconcerning the standardisation and disseminationof reporting tools. It seems likely that human capi-tal reporting frameworks with at least a minimumof standardised indicators will emerge.

Unless general approaches are developed sup-ported by governments and/or internationalorganisations, human capital reporting is likelyto focus on the management perspective,thereby neglecting other benefits of humancapital reporting, such as attracting qualifiedemployees. On the other hand, if a set of mini-mum indicators is established, the potential ofhuman capital reporting is likely to be a benefitfor the management and other stakeholders.

6. Exploring skills and training needsby enterprise surveys

Actors in the labour market, as well as researchers,are increasingly interested in solid empirical infor-mation on the development of labour demand andskill requirements at the enterprise level, as a com-plement to surveys on the labour force. Someimportant questions to be answered by enterprisesurveys are, for example, skills shortages andneeds, the underutilisation of human resources,links between competitiveness and human capitalinvestment, and questions concerning the evalua-tion of publicly funded training measures.

However, available data on the demand side(firms) are scarce compared with those on the

cuttliQ 'a), ME approaches aD reporting CGO human capital

Calculating Human capitalcosts of personnel accounting

policies

mid 1960s early 1960s

Human capitalmanagement

late 1970s

Strategicmanagement

early 1990s

Approach

Period of origin

Characteristic Financial utility ofpersonnel selection

Financial valueof enterprises'human capital

Learning anddisseminationof knowledgeas internalmanagementstrategy

Combination offinancial indicators,human capital, internalbusiness processes,customer relations andinnovation

Methods applied Utility analysis 0 Human resourceaccounting

0 Human resourcecosting andaccounting

0 Learningorganisation

0 Knowledgemanagement

The balancedscorecard

Reportingframework

Cost and benefitcalculations

Financialstatements

Non-financialstatements (if any)

General performancemeasurements

NB: The period of origin indicates when the approach was introduced. The methods indicated may, therefore, be much younger.

Source: Westphalen S.-A., 2000. Reporting on human capital: objectives and trends. In: Descy P., Tessaring M., eds. Training inEurope, Vol. 2.

24

29

Executive Summary

supply side (workers). Although a large volumeof enterprise data is being collected systemati-cally, much of it does not focus on and evenneglects aspects of training and skills.

Enterprise surveys can shed light on firms'measures to increase flexibility and theresulting skill needs. Changes in the organi-sational structure of an enterprise tend toincrease both the demand for skilled workersand the need for continuing training. A cen-tral determinant for the utilisation anddeployment of workers is the entire structureof the enterprise, its production concept, per-formance, human resources and strategies.These aspects should be covered by enter-prise surveys.

The same is true for the analysis of businessprocess reengineering, which covers the wholevalue-added chain of an enterprise, including sub-contractors and purchasers, and calls for a betterutilisation of the qualifications of employees.

A deeper insight into training and CVT aspects,and a challenging perspective for VET research,is to be expected from merged datasets combin-ing employer and employee data. This researchfield has begun to emerge rapidly in the past fiveyears.

There are important reasons for considering bothindividual preferences and enterprise strategies inrelation to training. These are not independentfrom each other: individual choice of trainingtakes into account existing training offers and thesubsequent perspectives on the labour market.Enterprises take account of the available humanresources in the internal and external labour mar-ket when deciding on training.

A number of questions remain concerning thedesign of enterprise surveys and the elaborationof merged datasets for employers and employees,and in particular concerning international com-parative surveys.

Experience with existing national surveys indi-cates several issues, which should be consideredin such surveys:

o the survey should preferably be designed as apanel which offers sianificant advantaees in rela-tion to the techniques of data collection, surveyand processing;

o an enquiry of a representative group ofemployees within enterprises would be indispen-

sable for construction of merged employer-employee datasets and for comparison of differentestimates and preferences on both sides;

o the greatest potential for analysing enterprisesurveys in particular longitudinal studies isoffered by econometric methods. Therefore, anumber of additional items should be includedin the survey in order to gain insight into themost important influences on enterprise trainingactivities and, using merged datasets, considera-tion of factors induced by the demand andsupply side;

o international comparisons based on jointactivity in several countries are useful to qualifynational observations concerning, for example,the commitment of enterprises to training, actualand future skill requirements, recruitment anddeployment policies, etc. First steps in this direc-tion have been undertaken by the CVTS, and afurther potential lies in Eurostat's enterprisedemographies .3

Part fourEmplioyment, economicperformance and skill!

Infsmatch

Part four of the report discusses a range of issuesin the context of skillslcompetences and theirrelationship with employment and labour mar-kets. Starting from a brief presentation of recentemployment trends, and a discussion of the eco-nomic and social benefits of education and train-ing, the question is raised of whether conven-tional definitions of formal skills should be com-plemented or even replaced by the notion of com-petences which are in reality 'traded' in thelabour market. This also touches upon the vari-ous aspects of skills mismatch unemployment,overqualification and skills shortages which arediscussed both from a theoretical and empiricalpoint of view. The last chapter deals with theadvantages and problems associated with skillforecasts at national, regional and enterpriselevel and presents several related activities inEuropean countries.

3 These are mainly based upon business registers and giveno indication on skills and training issues.

25:L4 30


L Employment in Europe

Recent data indicate an improvement in theemployment situation in Europe and decreasingunemployment figures. Employment change dis-plays an ongoing shift towards service sectors andhigher skilled jobs. However, the differencesbetween EU countries remain enormous. Equally,employment and unemployment figures vary sig-nificantly between men and women and betweenyounger and older workers.

Although the overall trend of unemployment hasreverted to a downward direction, unemployment,and in particular long-term unemployment,remains at a high level. In addition, a consider-able number of people have been sorted out dur-ing the previous decade of high unemployment:'hidden unemployment' in the EU is presumed toaccount for almost 40% of all people who areunemployed or, under certain conditions, wouldactually like to work (Table 11).

VELitig 4)9g VI3G composition cOao labour Gicu@Gpotential gender, MO- 9g, 9999

Status

People in employment (a)

1000

155 273

%

85.5

Full-time employees 105 901 58.3

Self-employed, family workers 21 098 11.6

Part-time employment 27 370 15.1

Unemployed (b) 16 156 8.9

Unemployed < 1 year 8 595 4.7

Long-term unemployed 7 309 4.0

'Hidden unemployment' (C) 10 140 5.6

Total labour force potential (d) 181 569 100.0

(a) Incl. people without statement of employment status;

(b) Incl. people without statement of unemployment duration;

(c) People who would like to work under certain conditionsbut are not registered unemployed;

(d) incl. without statement.

Source: Eurostat, Franco A., 2000. Labour Force Survey. Prin-cipal results 1999. Statistics in Focus, Theme 3-5/2000. (Com-munity labour force survey 1999); own compilation.

Furthermore, youth unemployment, although alsoslightly decreasing in the past few years, stillalmost doubles total unemployment (see Figure 8below). The difficult transition from educationand training to work is also illustrated by the factthat almost 50% of young unemployed people arelooking for a first job with considerable varia-tion, however, from country to country.

2. Education, training and economicperformance

The contribution of education, training and'human capital' to growth, competitiveness andemployment is one of the most disputed topics inresearch and policy. Furthermore, a number ofadditional benefits or 'externalities' most ofthem intangible ones are associated with skills,such as effects on health, crime and the avoidanceof unemployment and social exclusion.

Research, in particular on economic growth, for along time neglected the endogenous factors ofinfluence on growth and prosperity, i.e. technicalprogress and human capital, but concentrated oninvestments in physical capital and on 'labour' ingeneral. A new insight was brought forward byendogenous growth theories and empirical applica-tions based on these. These theories regard researchand development, technical progress, human capitaland knowledge as endogenous drivers of economicgrowth and of at least equal importance as physicalcapital.

A number of studies more or less confirmed thesignificant positive influence of research anddevelopment, human capital and knowledge ongrowth. However, several other studies are lessoptimistic. Moreover, critics argue that these newapproaches have not produced a substantial newinsight into the mechanics of dynamic growth.Much more research is needed on these issues,including also an improved and more coherentdatabase for international comparisons.

When considering the external effects of educa-tion, training and skills, a number of researchstudies display a positive correlation (not neces-sarily causality) between human capital and, forexample, health, reduction of criminal behaviouretc.

However, these aspects are not yet integratedin an overall measure of growth, prosperityand quality of life. A similar situation appliesto the effect of skills on unemployment,although there is strong evidence that higherskills significantly reduce the potential for anindividual to spend a considerable part of hisor her working life within unemployment.This also has impact on reducing publicspending on unemployment and thus indi-rectly influences economic growth.

26

3 1

Executive Summary

3. Dynamics of labour marketsand competences

Studies on the relationship between educa-tion/training and employment mostly refer to for-mal qualifications and thus imply a functionalrelationship between both systems.

In order to understand better what is 'traded' inthe labour market, and what are the implicationsfor skill-related imbalances, the concept has to beenlarged in two ways: the consideration of differ-ent time-scales in which education, training andproduction operate; and the notion of 'compe-tences' as a vector of different formal and non-formal human productive capacities.

There are considerable time lags between the iden-tification of new skill requirements and the perioduntil training reforms will be established and thegraduates with update skills enter and pass throughthe labour market. Since enterprises are interestedin a short-term coverage of new skill demands, thediachrony of time scales between skill generationand productive utilisation may lead to 'cobwebcycles' and thus may become counterproductive.

This touches upon the question on how skill require-ments can be anticipated early. Whereas the supplyand demand for formal qualifications (e.g. replace-ment and recruitment demand, new supply of edu-cation/training leavers) can be anticipated and bal-anced in the short and medium term with certainassumptions, competences and competence needsbecome unforeseeable beyond a certain horizon.

This assertion goes beyond the classic problems ofimperfect information on competences required fora job and on the future performance of an individ-ual in that job. The 'productive value' of an indi-vidual with a given set of characteristics willdepend on that individual's interaction with theworking environment and on the valuation of his orher competences at work. Individuals, in the courseof their working lives, draw on their experiences inand outside the workplace to adjust and supple-ment their repertoire of competences.

For these reasons, research including empiricalresearch should focus much more than beforeon competences. Research questions which stillhave to be tackled are the short- and long-termperspectives and coordination requirements in thesystems of skill generation and utilisation.

The provision of appropriate information on pos-sible future developments, and on 'mismatches'beyond formal categories of manpower demand

and supply, is a pressing task for research. Thesame is true of the analysis of the manifold inter-actions between supply and demand of compe-tences, the impact of education and trainingexpansion on labour markets and competenceutilisation, and the role institutions and otheragents play in this process.

Overproducing and/or underutilising compe-tences may seem a waste of resources. Avoid-ing wastage of human resources is one of thecentral problems of modern economies. It is apolitical problem in the true sense of the term,because imperfect information and the incom-patibility between the time-scales that governthe gestation of competences and their produc-tive utilisation, make it impossible to find asolution based on reliable economic or socialcalculations only.

Competences are generated in cooperation andinteraction between the educational and the pro-ductive spheres. Each of the two systems estab-lishes its own strategy in response to the action ofthe other.

The transition from school to work is a very spe-cial moment in the 'confrontation' of the two sys-tems. It is the moment when the differencesbetween the interests of the two systems comeinto play. At that precise moment, the productionsystem has a customer/supplier relationship withthe education system, and its normal behaviour asa customer is to try to obtain the best products atthe lowest prices. Skill is regarded by the com-pany as an intermediate good which must yield areturn on the company's investment.

The aim of the education and training system,on the other hand, is to allow everyone todevelop his or her potential as far as possibleand to become and remain employable.Though operating in a context of imperfectinformation, it is required to adopt a long-termperspective: the lifetime of individuals. Theknowledge imparted by education and trainingand by non-formal learning will be used inwhole or in part in a future society aboutwhich there is little reliable information.

One aim, therefore, should be to develop atleast those framework competences thatseem likely to prove durable and to providethe best basis for subsequent further training.

27

;C"


skills gaps, imbalances

inadequatequalifications

compared with jobrequirements

inadequatejobs compared

withqualifications

unemployment, hiddenunemployment orunderemployment

skills shortages(of workers with

particular skills oroccupations)

over- under- 'under- 'over- hidden under- (regis- quantita- shor-qualifi- qualifi- utilisa- utilisa- unem- employ- tered) tive tages ofcation: cation: tion'; tion', ployment in unem- shor- specificworking working invisible exces- ment terms of ploy- tages of skillsbelow above under- sive de- (not re- working ment, in skilled among

the skill the skill employ- mand gistered time particu- workers workerslevel level ment job which is lar long-

seekers, less termdiscour- than unem-

aged desired ploy-workers) ment

Source: Authors

4. Skill mismatch in the labour market

Skill mismatch in the labour market is discussedin this chapter under three angles: the persistenceof unemployment, overqualification and short-ages of skills (Figure 5). These phenomena arecoincident in most EU countries.

(a) Concerning unemployment, long time seriesover the past 35 years reveal that in OECD coun-tries the level of unemployment tended to remainat an ever higher level after each economic reces-sion (Figure 6).

Research has explained this phenomenon of 'hys-teresis' or persistence of unemployment by adecreasing probability of individuals finding a jobwith increasing unemployment duration ('statedependence'). The long-term unemployedincreasingly become unemployable because of aloss or obsolescence of skills and work attitudes,or because of a loss of 'reputation' in the eyes ofemployers.

A rival view suggests that it is less unemploymentitself and the associated loss of employabilitywhich explains structural and long-term unem-ployment. Instead, individual 'heterogeneity' in

terms-of-skills7gentleran-dlith& Characteristicswhich existed already before entry into unem-ployment as well as selection processes by

employers, are responsible for the high unem-ployment level in Europe.

Reasons given are skill-biased technical change,which favours the higher skilled, deindustrialisa-tion with ongoing shifts towards higher skilledsectors (particularly services) and occupations,and competition from low-wage countries whichall primarily affect the lower skilled workers.

Empirical evidence seems to prove the heterogene-ity thesis, although the situation is different fromcountry to country (Figure 7). Depending on whichof the two explanations is more valid for a particu-lar country, political measures should be different.Reactivation of the long-term unemployed, com-bined with the provision of temporary work experi-ence, with training to compensate for the erosion ofskills, with psychological support, lowering wagecosts and information campaigns for employers,are some of the measures which should be appro-priate if state dependence is the dominant reasonfor persistent unemployment.

If the heterogeneity argument applies, in particu-lar for the low skilled, the main responsibility lieson education and training policies to upgrade thelevel of skills, to impart transferable as well aspratticalskiltsTro- support non-formal learningand to promote a continuous adaptation to labourmarket needs in a framework of lifelong learning.

28

t.

Executive Summary

Figure (58 Unemployment (1621g Ow /DEW countries,Ea] Japan, IJ965I75 o 999/2000, (16

European Union, United States America

8 .4

4.0

12

9 59.9

11.1EU

10 -

7.7

,I

.,-..-.;8.6 7 8.27 OECD

n------

..

.

'...... . 1

_.,

%. ..

6.8' .

4

2

0

65

5.4 " /--------,/ * -

5.7USX.%

.. 4.7. -. ..°

N\,,-----------,

3.5 '(i 2.8...*Japan

2.1

67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99

Legend: annual averages; EU-data: % of labour force; OECD data: % of civilian labour force, standardised unemployment rates.

Sources: OECD. Economic outlook, various issues; Eurostat Newcronos database: unemployment, theme 3, Series B (variousissues); European Commission, 1999. Employment in Europe 1999. Luxembourg: EUR-OP.

These skills are seen as facilitating the entry intoworking life as well as ensuring employability inthe longer run.

However, in reality both reasons for persist-ent unemployment state dependence andheterogeneity will coincide. This calls forresearch and coordinated policies which donot concentrate on one of these aspects buttry to integrate both, also taking into accountthe political, economic and social contexts ofparticular countries.

(b) The second type of skill mismatch refers tooverqualification, i.e. the deployment of aworker below his or her level of qualification.Overqualification is seen as of increasing impor-tance for European labour markets as numerous

studies reveal. Overqualification seems to affectlower and intermediate skills, and in particularwomen, more than people with higher skills ormen.

A number of theories explain, at least partly, thephenomenon of overqualification. Empiricalmeasurement by 'objective', 'subjective' or 'indi-rect' approaches equally have their pros and cons.

Results of empirical studies based on theseapproaches make it difficult to gain a clear picturefor different countries and periods. There are sub-stantial differences from country to country,between younger and older workers depending ontheir particular status (adequately employed,unemployed, at the beginning of their workcareer) and between men and women. Moreover,the attitudes of employers and workers, as well asinstitutional arrangements and regulations (e.g.

3429


Figure 2 Long-term unemployment Rffei2, CDV OXGil a? education, aLbia ingi70 /61:0

12

10

10.6

1

1

1

--75.6

,

,t 1.63

1. I

1

3.11

3.q 4.011

,I I

A DK NL UK IRL S F P B F N D EL E

Below upper secondary education [2. Upper secondary education 0 Higher education

(a) Long-term unemployed (duration of unemployment 1 year or more) in % of the labour force with same level of education; sortedby upper secondary education.

Source: Bollens J., 2000. Unemployment and skills from a dynamic perspective. /n: Descy P., Tessaring M., eds. Training in Europe,Vol. 2; (based on Eurostat: Community labour force survey 1997).

concerning unemployment benefits) affect theproblem of overqualification considerably.

In addition, a clear picture of overqualification ishampered by varying results between differentstudies and approaches, even for one particularcountry. Substantial progress is being made byusing longitudinal data and an enlarged set ofindicators for overqualification.

A number of policy measures could remedy orprevent an increase of overqualification. Theseare appropriate training systems which impartbroader as well as 'marketable' skills. Educa-tional and vocational guidance is asked toimprove information on actual and future skillneeds, and thus of the awareness of the long-term risks and chances associated with a partic-ular choice or political promotion of an edu-cation and training programme. Other measuresdiscussed are, for example, the promotion ofregional mobility, the redefinition of unem-

ployment benefits, wage differentiation and anincreased involvement of people in financingtheir own training and higher education.

Research should make much more use of longitu-dinal data which take into account the gradualprocess of skill utilisation (or non-utilisation) in awork career perspective. More attention shouldalso be given to the non-formal components ofskills: formal qualifications alone seem less andless sufficient to explain the complex processes ofrecruitment, skill utilisation, mobility, career andpromotion of workers.

(c) The third type of labour market mismatchdiscussed in this report involves skills shortages.These are increasingly seen as inhibitors to thedevelopment of a knowledge- and information-based society.

Most skills shortages reported for EU countriesconcern lack of numbers of workers with ICT and

30

Executive Summary

engineering skills, but also of economists, teach-ers, and in the healthcare sector. Moreover, firmscomplain about lack of core skills among workers

literacy, numeracy, communicative and basicICT skills. A prospective study at European level,based on interviews with information systemmanagers and intermediaries as well as on educa-tion and training statistics anticipates a shortageof more than 1,7 million information technologyworkers by the year 2003 (Table 12).

Against this background, current policy atnational and European level focuses on the pro-motion of e-learning and supportive infrastruc-tures, on imparting basic skills and on the devel-opment of ICT-related pedagogical knowledge ofteachers and trainers.

Sceptical remarks on the evidence of skills short-ages concern not only the occasional lack of trans-parency in survey methodology, but also the factthat shortages of skilled personnel in a firm are onlyone, and often not the most important one, of sev-eral other obstacles to innovation and productiongrowth. Another serious counter-argument is thatshortages may be of short or medium term durationand may be reversed after some years. Given thelong time lag between the generation and produc-tive use of skills, this may result in 'cobweb cycles'which induce serious problems in the longer run

Thus, for example, present shortages in the ICTsector in some countries may also be the long-

`iftd:Og Shortages information technologydf[lbro Europe) 998-2008

1998 2000 2003

Demand (1000) 8772 10421 13071

Supply (1000) 8313 9189 11331

Shortage (1000) 459 1232 1740

Shortage (%) 5 12 13

among which shortagesin: (%)

Internetworking skills 14 23 33

Application skills 4 12 10

Distributed skills 5 10 10

Technology neutral skills 5 9 14

Host based skills 3 3 3

(a) European Union and Switzerland.

Source: IDC (International Data Corporation), Milroy A., RajahP., 2000. Europe's growing /T skills crisis. http://www.idc.com

term consequence of cut-backs of public fundingfor computer and engineering courses, as well asof high unemployment among computer special-ists and engineers in the past which also affectedthe choice of study at that time and led to adecrease of graduates some years later.

This calls for careful consideration of cycli-cal fluctuations in particular in educationaland training policy measures and theirlong-term effects on individual choice ofeducation and training and on the new supplyof skills.

5. Future skill requirements

Although man is not given to know the future,efforts should be made to elucidate future possi-bilities and dangers, and thus political measuresnecessary to prevent future imbalances associatedwith economic change and the supply anddemand of skills.

Forecasts aim to make decision-makers at all lev-els aware of the consequences of actions taken ornot taken. They may give an indication of long-term developments, e.g. demographic change, andtheir implications for education, training andemployment. The more rapid the change, how-ever, the more difficult and insecure forecastingwill be.

Therefore forecasts also have assessment andwarning functions in that they indicate needfor action or warn against undesired develop-ments. Forecasts never can anticipate futurerealities. But they can serve as a didactic toolin improving understanding and awareness ofthe actors concerned in relation to future pos-sibilities and the ways of influencing them intime.

This is the essence of a broad (and never-ending)discussion on skill and employment forecasting,its pros and cons and its possible use for decisionsof individuals, enterprises and the State.

There are manifold approaches to skill forecast-ing. They range from 'hard' quantitative projec-tions of supply and demand, partly based oneconometric and on flow and transition models,to more qualitative approaches such as scenarios,Delphi enquiries, monitoring, benchmarking,expert panels and 'holistic' approaches.


Quantitative skill forecasts are carried out in sev-eral EU countries such as in Germany, Ireland,the Netherlands and the UK, and partly also inFinland and Sweden. Several CEEC countries,which have a certain background in economic andmanpower planning, are reorienting themselvestowards approaches used in western countries.However, not all European countries are con-vinced of the relevance and use of such forecasts.They prefer, partly also due to a lack of statisticalinfrastructure, more qualitative or monitoringapproaches involving networks and actors atregional or local level. These issues are discussedin more detail in the report.

Moreover, the scope of forecasting is beingextended. This is done, for example, by theintroduction of generic skills and compe-tences in addition to formal qualifications(which prevail so far in forecast models), bythe consideration of the company level andincreasingly of regional and local levels.

Equally, future developments and respectivestrategies are being elaborated at Europeanlevel. However, due to restricted data and tothe diversity of European economies andskill patterns, these forecasts are mostly pre-pared in the form of scenarios, benchmarkingexercises and prospective analyses, partlyincluding the development of relevant indica-tors such as demography, economic growthand technological development.

Part fiveThnidivithiill perfrormance,

transitkon to working life andsocial] exciusion

The various issues examined in Part five of thereport have more of a focus on the individual level.Starting with a review of research on the determi-nants of participation in training and on the impactof training on individual performance, in terms ofpay, unemployment, productivity and mobility, itcontinues with a review of the latest research ontransitions from the education system to workinglife, an issue which continues to attract the attentionof researchers and policy-makers. Chapter 3 looksat the factors causing exclusion from the-labourmarket and from training measures and at the situ-ation of workers with a low level of qualifications.

32

1. Training and individual performance

It is a widespread belief that education and traininghave significant positive effects on individual per-formance and, in general, are able to explain amajor part of the variation in wages, unemploy-ment and other variables. However, there are con-siderable differences in research findings on theincidence and impact of training depending on thenational education and training system, and on thenature and quality of data and research methods.

At an aggregate level, the positive relationshipbetween education, training and individual per-formance has been confirmed by numerousresearch studies. Those who are better educatedand trained are, on average, more frequently ingainful employment, have higher earnings, partic-ipate more often in continuing training, are lessoften unemployed, are more often self-employed,have a higher regional mobility, and work withnewer and more high tech equipment.

Although these findings indicate clearly the benefitsof training for the individual, they are not a guide-line per se for policy. There is evidence that self-selection, i.e. the impossibility of comparing train-ing outcomes of an individual with the same indi-vidual without training (or with a perfectly compa-rable control group) may bias the results seriously.

In addition, non-negligible elements of differencein training outcome such as earnings, unem-ployment or work careers cannot be attributedto education and training alone. Innate abilities,heterogeneity of abilities and preferences, familybackground, political events, luck and economicand technological development are all factorswhich are relevant and bias the results, if notincluded in the analysis.

By and large, empirical evidence suggests thatstructured training systems with high investmentin initial training tend to lower individual returnsto continuing training (Table 13). This seems tobe the case in countries such as Germany andFrance. Conversely, in less structured initial train-ing systems (such as the UK and the US) individ-uals yield higher returns to continuing training.

Some findings challenge the role of governmentin training. Obviously formal education and train-ing cannot protect against all the storms of life forall people, but they may be very strong weaponswhen used at the right time, to the right extentand with the right content. At other times in anindividual's-working life, other strategies such asnon-formal learning, regional, firm or occupa-tional mobility might be more helpful.

Executive Summary

78t09 i0g Annual 11E02@ CO 04EGGO flO education Coi) selected OEOD countries

Uppersecondaryeducation

gender, 4)M 76

Non-universitytertiary

Universityeducation

Uppersecondaryeducation

Non-universitytertiary

Universityeducation

12.5

Women

7.9 6.7 7.5

Men

9.7 10.4Australia

Canada 16.1 28.1 28.5 12.5 23.0 16.5

Denmark 11.8 5.1 9.2 10.4 5.2 11.0

Finland 8.1 12.2 14.3 10.4 10.5 14.8

France 14.1 20.1 12.7 14.2 17.6 14.1

Germany 5.5 8.7 8.2 5.7 16.6 10.9

Ireland(a) 28.8 8.2 17.4 18.6 11.7 14.0

Italy 9.5 4.6 10.4 9.9

Netherlands 24.4 - 10.5 14.1 - 10.8

Norway 17.3 7.8 13.3 11.3 9.4 11.6

Portugal 32.4 - 28.3 33.3 - 27.3

Sweden 9.9 4.2 5.3 10.9 6.5 8.2

Switzerland 22.1 17.7 5.2 19.0 27.1 5.5

UK. 19.1 13.7 19.1 14.3 4.8 12.7

US 22.9 10.5 12.6 26.3 8.9 12.6

Average) 16.4 (0.44) 11.1 (0.68) 12.5 (0.56) 14.9 (0.46) 10.7 (0.89) 13.6 (0.30)

(a) Data refer to 1994; (b) unweighted average.NB: bold: above average

Source: OECD, 1998d. Human capital investment. An international comparison. Paris: OECD/GERI, Table A4.4.

For supportive VET policies, an adequate,systematic and regular research design exante is necessary to better understand themanifold relationships between VET activi-ties and their results. Tight public budgetswill cause the search for evidence of theimpact and efficiency of training pro-grammes to grow in the future. A tailoredresearch design, preferably based on longitu-dinal data, that takes into account the diver-sity of situations, heterogeneity of individu-als, differences in training systems, govern-ments, markets, etc., is, however, expensiveand takes time.

Comparative VET research based on microdata is,or can decisively be, improved by regularEurope-wide data sets, such as the Europeanlabour force survey, the European CommunityHousehold Panel, the Continuing VocationalTraining Survey or the International Adult Liter-

3 8

acy Survey. Despite some remaining methodolog-ical problems, international surveys should definethe most relevant human capital and training vari-ables in a more comparable way. Furthermore,access to these datasets for research should beconsiderably improved.

2. Transition from the education systemto working life

The stage of transition from education and train-ing (ET) to working life has attracted the atten-tion of researchers and policy-makers for wellover 1-2 decades. The dynamics that underpinthis stage need to be understood if policies are tobe better targeted.

In comparison with adults, young people are at arelative disadvantage in the labour market in termsof both the volume and quality of employment,despite a number of parameters that are favourable

33


in the short term: gradual reduction of the size ofthe youth cohorts in most European countries, gen-eral increase in their level of education, longerschooling, larger relative growth of sectors mostlikely to recruit a young labour force and introduc-tion of active measures to help young people togain a foothold in the labour market.

Unemployment is having more of an impact onyoung people, especially the less qualified, thanon adults (Figure 8). Young people are occupyingmore precarious jobs and are experiencingincreasingly long periods of transition betweenleaving the ET system and finding stable employ-ment.

From an individual point of view (schoolleavers'), transition can be considered as a periodof changing status, during which young peoplemove away from full-time initial ET towards astable position in (or possibly a withdrawal from)the labour market.

Comparative research is a very valuable tool instudying the determinants of this transition. Itmakes it possible to measure the differences andsimilarities between ET in different countries, to

compare the processes of labour market integra-tion and to identify the determining factors ofthese processes.

The nature of ET level of standardisation anddifferentiation and the labour market predom-inance of internal markets, extent of the systemregulating access to jobs, e.g. occupational mar-kets varies in Europe, as do the links that unitethem (ranging from no links to a network of veryclose links). In addition, specific national institu-tional features obviously have a significantimpact on the way in which socio-economicinequalities are reflected in school success, inlabour market integration and in individual paths.

The way in which the labour market is structuredis not directly linked with ET systems, but maywell have an impact on young people's transitionfrom the education system to stable employment.

When ET systems have a relatively generalorientation and internal markets dominate thelabour market, labour market entrants acquiretheir competences largely on the job. Most

Figure Og DevelopmentRQMM[flgl.414 (K)

unemployment PEI U3 41 990-99 comparison young Ecol eich03 people,

1992 1993 1994

18.3

8.2

1995 1996 1997 1998 1999

NB: Figures prior to 1995 refer to EU-12.

Source: Eurostat: Community labour force survey.

3934

Executive Summary

young people enter the labour market at lowoccupational grades and are at a disadvantagewhen competing with workers alreadyemployed by the company for better posts (interms of career and job security). In occupa-tional labour markets, however, entrants havea good chance of finding a job that is inkeeping with their particular occupationalqualification.

The entry of young people into working life dif-fers greatly across Europe. In terms of the risk ofunemployment, the European countries can bedivided into three groups:

(a) Austria, Germany, the Netherlands and Den-mark where the unemployment rate among youngpeople is relatively low at the end of their firstyear in the labour market (between 8 and 14%);

(b) the United Kingdom, Ireland, Belgium andFrance where unemployment rates at the entrystage can be considered average (from 18 to 36%);

(c) the Mediterranean countries (Portugal,Spain, Greece, Italy) where these rates are highestduring the first year in the labour market (from 21to 49%).

Differences quickly become less marked duringthe first ten years in the labour market. After tenyears, the differences between countries are muchsmaller (Figure 9).

To study the transition of a 'youth' categorysolely on the basis of age is to postulate that thebehaviour of people of similar ages is very homo-geneous in terms of levels of education and age ofentry into working life. Nevertheless, young peo-ple in a particular age group may be in very dif-ferent situations (such as further education,repeated years, military service, inactivity, work-ing life employment and unemployment). It istherefore best to base any analysis of transition onthe length of time that young people have been inthe labour market, i.e. the length of time sincethey left the ET system.

For instance, young entrants are more likely to beoffered a fixed-term contract. However, we mayask whether the greater precariousness of jobsoccupied by young people, in terms of status, isdue to a lack of experience or a lack of length ofservice in enterprise.

If the latter were the case, freshly recruited expe-rienced workers would also be more likely to beoffered fixed-term contracts. Recent recruitment

Figure ';X, Unemployment (ECG Cz potentiallabour ciaratc experience ca upper secondaryeducation [12a9GG@ (lSOED n70%

60%

50%

40%

30%

20%

10%

O

!

0% .

2 3 4 5 6 7 8 9 10

years of labour market experience

0 A D 121 A DK 0 NL

70%

60%

50%

40%

11111141440430% . .

Will.1111161145I,.,.__AMEM....A....mat:111.-ILI ...w.I.MIMINIImm,

0%1 2 3 4 5 6 7 8 9 10


0 B 0 IRL A F 0 UK

70%

60%

50%

40%

30%

20%

10%

0%

I'L

. I

--4." 1-:L-1

1116-r-.....,,,._

o 11.-ii...:. .

t -1:r.-00

1 2 3 4 5 6 7 8 9 10


0 EL 0 1 0 P A E

NB:Markers indicate actual values, lines are trendlines (loga-rithmic trends).

Source: Gangl M., 2000. European perspectives on labourmarket entry: A matter of institutional linkages between train-ing systems and labour markets? MZES Working paper 24.Mannheim: Mannheim Centre for European Social Research.

35


shows that the advantage that 'seniors' possess interms of employmerit status is relatively small(except in Sweden). It is new recruits in generalwho bear the burden of flexibility not justyoung people.

However, cross-section data analysis does notallow a detailed look into the transition processwhich precedes the acquisition of a stable job.Only longitudinal studies enable this kind ofanalysis; but there is no longitudinal study atEuropean level from which comparable data ontransitions can be obtained.

The TSER CATEWE project (Comparativeanalysis of transitions from education to work inEurope) combines cross-section data analysesfrom labour force surveys with temporal series(flows) obtained from the transition surveys con-ducted in some countries (France, Ireland, Scot-land, the Netherlands). At the time of drafting ofthis report only partial results of this project wereavailable, which show that, combined with thecross-section data, the longitudinal data (eventhough from only some countries) provide a verycomprehensive analysis of transitions between theeducation system and working life in Europe.

The research concludes that at present the bestEuropean ET models feature a high level of inte-gration and coordination between the State, ETproviders and employers. It therefore seems cru-cial to construct strong links between the ET sys-tem and the main economic players, especially atsectoral, regional and local level.

The experience gained from research on transitionis much more extensive than in other fields ofeducation and training research; however, fewcomparable data are currently available. They arelimited to data from the labour force survey(which does not deal specifically with this issue')and to comparative longitudinal databases, partlyfunded by the European Commission, which wereset up thanks to cooperation between researchersin a few countries.

The lack of information concerning demand fortraining is one of the main features of research ontransition; current research therefore tends to bebiased towards the individual level and the supplyside. It is clear that more studies need to be con-ducted within companies.

`1- Although, in 2000, an ad hoc module on transition hasbeen included in the Community labour force survey. Pre-liminary results should be available during the second halfof 2001.

36

Facilitating the transition between the educa-tion system and working life is a major polit-ical priority. However, there is at present nosolid basis of empirical research that theMember States and the EU could draw on tohelp them to decide which measures to intro-duce, due to the inadequacy of available dataand the lack of comparative analyses. Thesegaps need to be filled by setting up appropri-ate databases and by developing comparativeresearch which focuses on the impact of themeasures adopted.

3. Social exclusion and reintegrationvia training

The structural changes that have reshaped theeconomies of the industrialised countries over thelast 20 to 30 years have also led to major changesin the structure of the labour market and socialclasses. Social exclusion in one form or othernow threatens many more people.

Social exclusion involves the creation of dividinglines between certain groups and the rest of thepopulation. Sex, age, health, standard of educa-tion or nationality are key factors in explainingnon-participation in the labour market and train-ing schemes.

A study of the relationship between unemploy-ment and social exclusion shows that there areimportant variations in the ways in which theEuropean social welfare systems provide a certainstandard of living for the unemployed: on the onehand, the countries of northern Europe where alarge proportion of unemployed people are pro-vided with a relatively good standard of livingand, on the other hand, some southern Europeancountries where jobseekers receive minimalfinancial assistance.

If social exclusion is defined as a situation inwhich poverty goes together with social isolationand the non-achievement of life projects, unem-ployment clearly constitutes a major risk factor.In the southern countries, where poverty is moreprevalent than in the northern countries, unem-ployed people are protected from social exclusionby solid ties with family and friends. The risk ofisolation is much greater in countries such as theUnited Kingdom, France and Germany where thebenefit system is fairly extensive (although levelsmay in some cases be low or irregular) but socialties are not as strong.

Executive Summary

Nevertheless, it is worth keeping in mind thatunemployment and labour market exclusionis linked more to the general shortage of jobsand the recruitment practices of employersthan to individual attitudes, failures or fea-tures. Improving the human capital of theexcluded through the provision of educationand training is therefore not enough; somestructural and institutional barriers have to belifted if the divide separating those who arewell integrated in the labour market fromthose who are not is to be removed.

In some cases, however, unemployment is deter-mined by individual choices:

(a) the individual may consider unemploymentadvantageous from an economic point of view; inthis case 'the unemployment trap' may be theresult of a financial calculation;

(b) the impact of the 'training trap' is moremarked as jobseekers who embark on training donot just have to make a financial outlay (trans-port, child-minding, course materials, etc.) butalso have to put off looking for a job. Trainingthen takes the form of a 'risk' activity whose(immediate) result is far from certain.

It cannot be concluded from empirical findingsthat unemployed people are less committed towork than the employed. An unemployment ben-efit system, moreover, does not weaken people'sdesire to work' (with the possible exception ofwomen in countries where gender differences areculturally more traditional) (Table 14).

In most European countries, publicly financedtraining is available only for unemployed peoplereceiving benefits (who may also have to havebeen unemployed for a minimum, and in somecases continuous, period). This causes the institu-tional exclusion of all groups of unemployed peo-ple who do not belong to this category, and par-ticularly the unemployed who have not registeredwith social welfare or labour offices.

Tighter public budgets mean that the empha-sis is being placed on the economic effi-ciency of training programmes, judgedagainst the results of the programme (per-

This concept has, however, many facets; while some peo-ple may say that they are 'motivated to work', they maylay down certain conditions or be unavailable.

cudDog 96s ComparisonOD czoge cg workers(leaving ed)gCountry

DK

eUGGiO commitmentaid unemployed people

financial fiM120 aodia TZ)

% committedunemployed

82.8

% committedworkers

76.3

NL 80.4 67.3

S 78.7 75.9

UK 78.3 53.0

I 75.6 42.7

EL 74.8 49.4

IRL 71.4 62.1

P 70.7 58.8

D (East) 69.0 61.2

A 66.7 54.0

B 60.4 44.4

F 59.4 36.9

FIN 57.5 55.2

EL 51.7 35.8

D (West) 48.7 43.2

EU-15 63.7 48.0

Source: Gallie D., 2000. Unemployment, work and welfare.Paper presented at the seminar 'Towards a learning society:innovation and competence building with social cohesion forEurope'. A seminar on socio-economic research and Euro-pean policy, Portugal, Cascais, 28-30 May 2000.

centage of participants who find a job aftercompleting the course). The more the stressis placed on efficiency, the more programmesare targeted on those individuals most likelyto achieve the set objectives ('creaming off')and therefore the more selective they are(economic exclusion).

When service providers are freer to decide ontheir selection criteria, they tend to give priorityto the criterion of motivation (a person's desire toimprove their situation). This may lead to a kindof psychological exclusion since the unemployedperson's motivation and needs shape their desireto participate in, their access to, but also their suc-cess in, training.

Training which does not aim to reduce the gapbetween the 'culture' of the individual and thepredominant 'culture' of the labour market may

37

4 2


bring about the exclusion of those people whoseculture least matches the predominant culture ofthe labour market (cultural exclusion).

Active measures are increasingly in vogue. Social'activation' and related measures aim at the rapidsocial reintegration of people excluded from thelabour market and dependent on social assistance.Under most programmes, this reintegration takesplace via the labour market. The 1990s saw theintroduction of what can be termed `workfare'6where unemployed people receive financial assis-tance only if they are prepared to accept employ-ment. Should they refuse to accept employmentthey may suffer sanctions that may go as far astotal withdrawal of unemployment benefit (politi-cal exclusion).

An evaluation of the results of workfare needs tobe based on a range of criteria and not just on thejobs obtained. Account needs to be taken of thecharacteristics of these jobs and of the future ofpeople not taking part in the measure.

Training seems to be an effective active measureagainst unemployment. This measure has a posi-tive impact for the most disadvantaged, as anincrease in the number of people participating intraining leads to more flexible selection criteria.

Certain European countries are moving in the direc-tion of what can be termed `learnfare'7: the benefi-ciary must attend training to continue to receivebenefits. In this case, unemployed people have to beinformed how the measure enhances their employ-ability (in order to improve their motivation andjustify the compulsory nature of the measure).

Approaches which neglect the economic con-text are based on models of 'individual defi-ciency' and on the assumption that people areunemployed because they lack 'qualities'.Responsibility for success or failure is thustransferred to the individual. According tothis point of view, the role of the publicauthorities is to provide training opportuni-ties; people who, despite these opportunities,continue to be unemployed are suspected ofbeing either unwilling to work or incapableof working.

6 This term is a combination of 'work' and 'welfare'.Applied to learning, this formula refers to the introductionof an obligatory system of education and training.

38

In a context of high unemployment and inflationof qualifications, a low level of education isincreasingly synonymous with a precarious situa-tion in the labour market. The socio-economiccontext and the education and training system ineach country help to define the 'risk group'.There is nevertheless an emerging consensus inEurope that the upper secondary level (ISCED 3)has become the minimum needed for a good startin working life

Several hypotheses may explain the deterioratingworking conditions of the least qualified, whosenumbers are now falling:

o the redistribution of employment between thesectors: low-skilled jobs are concentrated in sec-tors that are in decline;

o the bias that the new technologies have intro-duced towards more highly skilled people (skill-biased technological change) which is leading topolarisation or mismatch on the labour market(overqualification, underqualification).

o labour market substitution: in a context wherethere are too many diploma holders, posts thatwould normally be occupied by workers with lowlevel of qualification are being occupied by peo-ple with better qualifications. The result is thatthese less qualified people are being expelledfrom the labour market;

O labour market segmentation: the distinctionbetween a hard core (core workers) and a flexiblecore (non-core workers, in the sense of marginalworkers) of workers is central to theories of seg-mentation. The former group is closely linked to theworkplace through stable and advantageous con-tracts. The latter group is recruited under fixed-termor temporary contracts, and is mainly employed inposts necessitating fewer qualifications.

In general, and in order to prevent less quali-fied workers from being excluded from train-ing, VET and employment policies have toconcentrate on strategies and tools that canhelp them to access learning opportunities:targeted policies, social partner participation,guidance and counselling, recognition anduse of non-formal learning, etc.

Improving the situation and employment prospectsof less qualified workers is a necessity if Europeancountries are to remain competitive and if the mar-ginalisation and exclusion of a significant propor-tion of the labour force is to be prevented.

4 3

Executive Summary

Comparative research has also started to look atthose training processes likely to be the most effec-tive. The TSER programme has funded a projectstudying the effectiveness of training available forthe long-term unemployed in seven countries: Bel-gium, Denmark, Greece, Ireland, the Netherlands,the United Kingdom and Norway.

One of the findings of this study was that cream-ing off is prevalent and that it is having a positiveimpact on the effectiveness of training schemes,thus favouring the highest achievers and aban-doning those who really suffer exclusion. Exces-sive creaming off reinforces the exclusion of themost disadvantaged groups and entails a highsocial cost.

In future the factors that determine the effective-ness of training measures should be explored fur-ther. More differentiated models need to be devel-oped to pinpoint the impact of the variousschemes.

The current ageing of the labour force is likely togenerate a higher labour demand; in order to meetthis demand for labour, it will therefore beincreasingly important to reintegrate the unem-ployed and non-workers preferably after appro-priate training and to identify the competencesof all workers. If this demand is not met, the mis-match between supply and demand may lead toeconomic recession.

Offering unemployed people training which doesnot lead to real qualifications but which insteadis limited to immediate employability may wellundermine integration prospects when economicgrowth picks up and the demand for competenceschanges. Training efforts therefore need to be'sustainable', i.e. valid over the long term andunder changing working conditions.

Financial assistance offered by public authoritiesshould, on the one hand, help the unemployed toavoid poverty and, on the other hand, free themfrom the daily problems of social and material'survival' so that they can actively look for a sta-ble job that is in keeping with their competencesand aspirations. Encouraging unemployed peopleto accept any kind of job worsens their chances ofintegration (under-skilled and unstable jobs, riskof a return to unemployment).

Back-up measures should be put in place toensure the continuing participation of the unem-ployed in the life of the community. Such meas-ures reduce the risks of isolation and the subse-quent loss of social identity.

As far as the individual is concerned, it is cru-cial to take account of motivation and the abil-ity to learn and to evaluate the potential bene-fits of learning. Unemployed people wantmore than anything else to work. A sustainablepolicy to motivate and re-integrate the unem-ployed, under which employment and trainingcan be combined, is therefore preferable tocompulsory training programmes.

Part sixVET research outsidethe European Unkion

Chapter 1 of this Part sets out to survey VETresearch in eleven countries of central and east-ern Europe (CEECs). It endeavours to evaluatethe extent to which research is responding to themajor socio-economic challenges posed by thetransition from a centrally planned economy to amarket economy. The aim is to identify the mainweaknesses in VET research in the CEECs and tomake it more transparent, by analysing its find-ings and its failures.

Chapter 2 reviews VET research, in particular therole and main issues of research institutions, in aselected number of other non-EU countries. Inaddition, research undertaken by internationalorganisations is described briefly.

1. VET research in the countries ofcentral and eastern Europe8

Generally speaking, VET research in the CEECsappears to have responded successfully to themajor challenges of the transition period. In thepast few years, national research has demon-strated increasing maturity; it has played anincreasingly assertive part in the reform process.However, its development is being hampered bycertain systemic (organisational, institutional,financial) obstacles.

In addition to the problems specific to theeconomic transition, the CEECs must submit tothe same demands as EU Member States: global-

Albania, Bulgaria, Czech Republic, Estonia, Hungary,Latvia, Lithuania, Poland, Romania, Slovakia andSlovenia.

39


isation of the economy, technological change andthe advent of the information society. The mostimportant challenge facing the CEECs is tocomplete the transition to a market economywhile at the same time creating enough jobs toavoid too high a level of unemployment and inac-tivity.

The change of regime has had a profound impacton the research community. Under socialist rule,research was dominated by political rhetoric dic-tated by the regime. Applied research wasrejected, since the regime did not consider it nec-essary to use empirical data to support (or ques-tion) its political arguments.

It is essential for research to have a global under-standing of the system and of the dynamics ofchange. VET research in the CEECs is oftenfocused on analysis of isolated elements of thesystem, with little attempt to obtain an overallview of the system and thus understand the inter-actions that govern its operation. This fragmenta-tion of research is reflected in the division ofinstitutional structures, each 'specialising' instudying one element of the system, with littleinformation on results obtained in related fields.

Another weakness is the lack of sound theoreticalresearch into the socio-economic context (in thebroadest sense) of VET. The involvement of thesocial partners in research is limited. Privateenterprises and non-profit-making associationsalso play an extremely limited part. Research intocivil society is not yet very active.

VET research is mainly financed by public funds,primarily distributed among the principal insti-tutes. Labour market research is primarilyfinanced by labour ministries and VET researchby education ministries. This system leads tofragmentation of research and a lack of intersec-toral cooperation and contextual perspectives,since research fields are narrowly defined.

In a period of economic problems, financialsupport for research from international insti-tutions is essential. Its impact in the field ofVET research in particular is huge in theCEECs. However, certain adjustments wouldhelp to make international aid more efficientand bring it more closely into line withnational needs. In particular, there is a needto concentrate on follow-up projectsdesigned to-implement research results-and-recommendations. At national level, coordi-

40

nation mechanisms would increase the trans-parency of research projects already carriedout thanks to international support, in orderto prevent duplication of effort and to ensurethat national priorities are taken intoaccount.

VET research in the CEECs focuses on two mainareas: research into VET systems and contextualresearch.

Some themes are indicated as regard research intosystems:

o From the viewpoint of implementing a strat-egy on lifelong learning, it is important forresearchers to clarify their vision of VET andposition their work in relation to the various ele-ments of the education and training system.Hence multidisciplinary research must be encour-aged, to avoid fragmentation of analysis andpractices (characteristic of the reform process inthe CEECs). Unfortunately, such fragmentationcurrently exists, with initial vocational trainingbeing researched separately from continuingvocational training and from the rest of the sys-tem, often without particular reference to thelabour market or the socio-economic context.

o Research into financing of VET must applyitself to finding ways to encourage the participa-tion of employers in financing and organisation oftraining. Research must also propose solutionsdesigned to make VET financing more efficient.

o No systematic research has been devoted tocontinuing vocational training. While initial train-ing has been relatively well researched, there are nodata or indicators confirming the development ofcertain sub-sectors in continuing training. There isalso a shortage of research results relating to humanresources development (HRD) in enterprises.

o Research into innovative teaching methods(project work, group work, etc.) should be coordi-nated with the work recently undertaken on train-ing of teachers and trainers. The various elementsof this training (transparency, standardisation,updating, etc.) are inseparable from the changesaffecting the entire education system (integrationbetween teaching and world of work, evolution ofthe teacher's/trainer's function in the learningprocess, new flexible learning methods, openingup of school to the outside world, and the role ofthe education system in lifelong learning).

o The rehabilitation of organisations in civil soci-ety (non-governmental organisations, public and

4 5

Executive Swnmary

Figure 11C)g Educational 11xdi N.Egg coa a-f§e@) aid

90

80

70

60

50

40

30

20

10

0

PL LT EE BG SL HU LV RO SK CZ

ISCED 1111 ISCED 3 ISCED 5-7

EU-15

Sources: CEECs: ETF, National Observatories; EU-15: Eurostat.

NB: Sorted by ISCED 3 (upper secondary education)

professional associations, and unions) discreditedby the previous regime should be covered byresearchers from a broader sociological perspective.

The following observations can be made asregards contextual research:

o All the countries have better analytical andstatistical coverage of unemployment than ofemployment. It would be useful to carry out sup-plementary analyses of unemployment and theimpact of measures in support of employment,and of their role in the transition process, in orderto have a basis for comparison in evaluating thechanges that have occurred in the CEECs in thepast ten years.

o Social exclusion, a new phenomenon in theCEECs, is a research subject currently receivinglittle attention.

o Research into the transition of individuals isdefinitely too limited to the school/work dimen-sion and neglects other aspects, such as the transi-tion between unemployment and employment,from one type of employment to another, betweenoccupations, etc.

o There are few studies in the CEECs analysingemployers' needs in terms of qualifications andskills and their impact on education and training,mainly because they are very costly. In economiesin transition, occupational profiles change morerapidly than occupational norms. The added valueof research into particular know-how or compe-tences is obvious, as is that of reconstructing cur-rent job profiles to update occupational norms.

o In the CEECs, short-term forecasts are morecommon than medium- and long-term forecasts.

The most convincing research result to date hasbeen the drawing up of a concept for a system ofhuman resources development at national level, inthe context of lifelong learning.

However, VET research still suffers from certainweaknesses: too limited a field of investigation,inadequate quality, poor methodological approachand inefficient organisation in some fields ofresearch:

o the global challenges posed by the develop-ment of knowledge-based enterprises; the

41


service sector; SMEs; questions of access toknowledge, information and ICTs;

O conceptual and theoretical research into VETprocesses and results;

o learners' needs in the context of continuingtraining and in-company HRD;

o dissemination and implementation of researchresults;

O multidisciplinary research and collaborationbetween institutions.

There is a need for backing research, whethernational or transnational, in the fields showingcertain weaknesses. Similarly, assistance isneeded in research fields which, although bet-ter covered, are not sufficiently conceptualisedand do not possess adequate methodology.

2. VET research in other non-EUcountries

This chapter provides a brief overview of VETresearch in a selected number of non-EU countries.However, apart from time and budget constraints, acomprehensive and consistent survey is hamperedbecause of the very different demarcations of VET(and of VET research respectively), of the multi-and interdisciplinary orientation of VET researchand of the heterogeneity of the institutions, associ-ations and researchers in different countries.

In general, there is an increasing VETresearch focus on the interrelationshipsbetween economic development, labour mar-ket needs and vocational training. Anotherresearch field is pragmatic or policy-orientedresearch concerning the evaluation or devel-opment of system reforms. Other main fieldsare curriculum research, didactics, method-ologies and media in training.

The support of thematic networks and the provisionof information (databases, research results, etc.) isof increasing importance. Cooperation and takingon board experiences and suggestions from othercountries rank high in the promotion and develop-ment of national systems of vocational training.Equally, international or supranational organisa-tions (in particular the European Commission, ILO,OECD, Unesco/Unevoc) are important providersof information, documentation and cooperation.

Brief description of VET research in selectedcountries:

Due to the reforms to the VET system in Aus-tralia since the early 1990s, VET research hasshown a significant expansion with a number ofinstitutions involved at national and regionallevel. Current VET research done, for example,by the National Centre for Vocational EducationResearch (NCVR) focuses, amongst other things,on the economic, social and employment implica-tions of VET; on transitions from school to work;and on the quality of the provision of VET.

The federal system in the US, and the manifoldtraining and research activities, hamper a compre-hensive overview on VET research in this coun-try. At national level, the National Centre forResearch in Vocational Education (NCRVE), forexample, conducts VET research focusing,amongst other things, on innovative ways of link-ing education and work, curriculum research andqualification standards, performance at the work-place and the development of work-related tech-nological skills.

Canada is involved in numerous developmentprojects, international VET research and coopera-tion and exchange with researchers abroad.School-to-work transitions, reforms of vocationaleducation and further training, skill standards,political and industrial-sociological labour marketresearch and the establishment of research net-works are some major topics of relevance forVET research in this country, carried out, forexample, by the Human Resources DevelopmentCanada (HRDC) and by sector councils.

South America, with the examples of Brazil,Argentina and Uruguay, displays rather heteroge-neous training systems and, correspondingly,VET research.

In Brazil, the economic transformation is charac-terised by high school dropout rates and a highlevel of illiteracy. Therefore, reforms of the train-ing system, establishing closer links between edu-cation, training, work and technology, lifelonglearning and the reintegration of adults and youngpeople, rank high in the agenda of VET policyand research, as, for example, carried out by theInternational Centre for Education, Labour andthe Transfer of Technology (CIET).

These problems apply to an even higher degree toArgentina, where initial training is almost exclu-sively the responsibility of the State. Increasedinternational competition and the fact that thelevel of qualification no longer satisfied firms, led

442

Executive Summary

to a decentralisation of competences in VET andto an increasing involvement of social partners.The relationships between skills, growth, labourmarket and education/training, human resourcedevelopment and information technology aresome research topics of the recent past, con-ducted, for example, by the National ResearchCentre for Human Development (CENEP).

In Uruguay, education and training are highlyacknowledged and the illiteracy rate is amongst thelowest in the world. Research topics are similar tothose mentioned for other countries, supported alsoby the Inter-American Centre for Research andDocumentation (Cinterfor/Cinternet).

In Japan, the Japanese Institute of Labour and thePolytechnic University (under the aegis of theMinistry for Labour) carry out numerous researchactivities also in the field of VET. Economic andemployment aspects, working life studies, thedevelopment of work skills and research intoteaching and learning are only some of the numer-ous research programmes to be mentioned here.

The reform of the system of vocational educationin the People's Republic of China since the early1980s increased the demand for research intosteering, reform strategies and monitoring ofmeasures. However, only a relatively limitednumber of researchers work in VET researchfields. Some of the research centres to be men-tioned here are the Central Institute for VocationalTraining (CIVT) and the Occupational Skill andTesting Authority (OSTA). Applied VET researchis most highly valued, e.g. concerning social andeconomic development, curricula and teachers,educational management and information andsupport. It is felt, however, that the theoreticalbasis of VET research is still underdeveloped andthat research is too much related to the directimplementation of policy matters.

Russia has a long tradition in 'occupational edu-cation' , including the development of teaching

methods and policy advice, carried out, for exam-ple, by the Russian Education Academy and theAcademy for Vocational Education. However,VET research is predominantly tied in with thevarious levels of vocational education basicvocational education and middle-grade vocationaleducation. Numerous specialised departments areengaged in VET research, increasingly also runby the regions.

In Switzerland, a large number of mostly small-scale institutions coordinated by a coordinationunit are working in the field of educational/train-ing research and school development. In spring2000, the Federal Office for Vocational Educationand Technology (BBT) identified a number ofresearch areas which will be given priority (andfunding) in the future. Topics of relevance for VETresearch include: VET systems; continuing train-ing; costs and benefits of VET; evaluation, steer-ing, quality and innovations; new occupations; andresearch on young people, gender and disadvan-taged groups.

The synthesis report also contains a review ofVET related research activities by educationalassociations and international organisations, inparticular the World Bank Group, Unesco/Une-voc, ILO and OECD.9 Numerous research issuesare tackled by these organisations. Moreover, theyprovide comprehensive material and statisticswhich are highly useful for international compar-isons.

9 For more details see the synthesis report (Descy & Tessar-ing: Training and learning for competence) and the con-tribution of Lauterbach et al. to the background report(Descy & Tessaring, eds. Training in Europe, Vol. 3).Research activities of the European Commission, in par-ticular within the framework of the Leonardo-da-Vinciand the TSER programmes, are integrated in relevantchapters throughout the synthesis report. Similar appliesto research done by OECD.

43


Annex: Contributions to the backgroundreport of the 2' research report

Part oneVET systems, coordination with the labour market

and steering

Steering, networking, and profiles of professionals in vocationaleducation and training (VET)Lorenz Lassnigg

Financing vocational education and trainingAndy Green, Ann Hodgson, Akiko Sakamoto, Ken Spours

How to improve the standing of vocational compared to generaleducation. A collaborative investigation of strategies and qualifica-tions across EuropeJohanna Lasonen, Sabine Manning

Certification and legibility of competenceAnnie Bonder, Laurence Coutrot, Edith Kirsch, Jean-LouisKirsch, Josiane Paddeu, Alain Savoyant, Emmanuel Sulzer

The changing institutional and political role of non-formal learn-ing: European trendsJens BjØrnavold

The problems raised by the changing role of trainers in a Euro-pean contextMara Brugia, Anne de Blignieres

Part twoLifelong learning and competences: challenges and reforms

Lifelong learning How the paradigm has changed in the 1990sMartina NI Cheallaigh

Training for new jobs: contents and pilot projectsJeroen Onstenk

Vocational training and innovative practices in the environmen-tal sector. A comparison of five EU Member States, with speci-men cases

Roland Loos

Company-based learning in the context of new forms of learningand differentiated training pathsPeter Dehnbostel, Gisela Dybowski

Part threeTraining and employment in a company perspective

Globalisation, division of labour and training needs from a com-pany viewJohan Dejonckheere, Geert Van Hootegem

Training, mobility and regulation of the wage relationship: spe-cific and transversal formsSaid Hanchane (with the assistance of Philippe Mauna)

The employment and training practices of SMEs. Examinationof research in five EU Member StatesPhilippe Trouye et al.

Human resource development in Europe at the crossroadsBarry Nyhan

Reporting on human capital: objectives and trendsSven-Age Westphalen

Vocational training research on the basis of enterprise surveys:An international perspectiveLutz Bellmann

44

Part fourEmployment, economic performance

and skill mismatch

The skills market: dynamics and regulationJordi Planas, Jean-Francois Giret, Guillem Sala, Jean Vincens

Economic performance of education and training: costs and ben-efitsAlan Barrett

Unemployment and skills from a dynamic perspectiveJoost Bollens

Overqualification: reasons, measurement issues and typologicalaffinity to unemploymentFelix Bfichel

Forecasting skill requirements at national and company levelsRobert A. Wilson

Part fiveIndividual performance, transition to active life

and social exclusion

Training and individual performance: evidence from micro-econometric studiesFriedhelm Pfeiffer

The effect of national institutional differences oneducation/training to work transitions in Europe: a comparativeresearch project (CATEWE) under the TSER programmeDamian F. Hannan et al.

Education and labour market change: The dynamics of educa-tion to work transitions in Europe. A review of the TSER Pro-grammeDamian F. Hannan, Patrick Werquin

Selection, social exclusion and training offers for target groupsJan Vranken, Mieke Frans

Training and employment perspectives for lower qualified peo-ple

Jittie Brandsma

Part sixVET research activities outside the European Union

Research on vocational education and training at the crossroadsof transition in Central and Eastern EuropeOlga Strietska-Ilina

VET research in other European and non-European countriesUwe Lauterbach et al.

Annex:VET related research on behalfof the European Commission

Research on vocational education and training in the currentresearch framework of the European CommissionLieye Van den Brande

Synopsis of selected VET related projects undertaken in theframework of the Leonardo da Vinci I programmeCedefop

Targeted socio-economic research (TSER): Project synopsesCedefop

4 9

Cedefop (European Centre for the Development of Vocational Training)

Training and learning for competence:Second report on vocational training research in Europe. Executive summary

Pascaline DescyManfred Tessaring

Luxembourg: Office for Official Publications of the European Communities

2001 VI, 44 pp. 21.0 x 29.7 cm

(Cedefop Reference series; II ISSN 1608-7089)

ISBN 92-896-0020-9

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Les editions La Liberté Inc.

1/2001

7FEMIlE End GETV[TE'ff©T ©cap otAno

Second report on vocationaltraining research in Europe:executive summary

:*CEDEFOP

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ISBN 92 896-0020-9

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