Slide1 l.jpg
This presentation is the property of its rightful owner.
Sponsored Links
1 / 32

Institut Arbeit und Technik PowerPoint PPT Presentation


  • 47 Views
  • Uploaded on
  • Presentation posted in: General

Wissenschaftszentrum Nordrhein-Westfalen. Wuppertal Institut für Klima, Umwelt, Energie. Kulturwissenschaftliches Institut. Institut Arbeit und Technik. Gerhard Bosch The Changing Nature of Work: Comparative Perspectives THE FUTURE OF WORK: An International Symposium

Download Presentation

Institut Arbeit und Technik

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Slide1 l.jpg

Wissenschaftszentrum

Nordrhein-Westfalen

Wuppertal Institut für

Klima, Umwelt, Energie

Kulturwissenschaftliches

Institut

Institut Arbeit

und Technik

Gerhard Bosch

The Changing Nature of Work:Comparative Perspectives

THE FUTURE OF WORK:

An International Symposium

ESRC Future of Work Programme

London, 23-24 June 2003

Prof. Dr. Gerhard Bosch

Institut Arbeit und Technik, Munscheidstr. 14, D - 45886 Gelsenkirchen

Tel: +49 209/1707147, Fax: +49 209/1707124, email: [email protected]

Institut Arbeit und Technik

Gerhard Bosch


Slide2 l.jpg

The Changing Nature of Work: Comparative Perspectives

Structure of the Presentation

1

2

3

4

Changes in the labour market

Myth in the discussion on education and work

Removing barriers lifelong learning

Conclusions

Gerhard Bosch


Slide3 l.jpg

1.Changes in the labour market

1.11st Trend:

Investments in intangibles are becoming more

important

than

investments in tangibles

Old technologies require more investments in tangibles

(railroadification).

The new more knowledge-based technologies require more

investment in intangibles.

The relation between the stock of investments in tangibles and

intangibles changed from 2 to 1 in the 20's to 1 to 1 in the 90's.

Fig. 1

Figure 1:

US Capital Stocks

Billions of Dollars

6075

1929

(structures and equipment, inventories, material resources)

tangible

3251

non-tangible

(education and training, health and safety mobility, R&D)

8120

1948

5940

17490

1973

17349

28525

1990

32819

Source: Abramovitz, M., David, P. 1996: Employment and Growth in the Knowledge-based Economy. OECD

Gerhard Bosch


Slide4 l.jpg

1.Changes in the labour market

1.22nd Trend:

Education is getting more and more

the entry ticket into the labour market

Fig. 2

The higher the skill level the higher the employment rate.

Low education means more and more exclusion from the labour market.

Employment rate of men and women (25 - 54 years)

Figure 2:

by educational attainment in the EU 15, 1997

79

LOW

48

86,3

Men

MIDDLE

68,3

Women

91,2

HIGH

81,1

Source: European Commission, Employment rates report Luxemburg 1998

Gerhard Bosch


Slide5 l.jpg

1.Changes in the labour market

1.33rd Trend:

Working hours differ increasingly by educational attainment

The higher the skill level the longer the working hours.

Fig. 3

„Brain operating hours" are becoming more important than machine operating hours.

Skill shortages have been reduced by increase in working hours.

Low skilled work is less and less utilised.

Figure 3:

Actual weekly working hours in West Germany

Change

1984

1997

1984 - 1997

35,9

- 12,5%

Un- and semiskilled

31,4

39,2

Basic vocational qualification

- 4,8%

37,3

43,2

Intermediate vocational training (Masters etc)

+ 3,5%

44,7

43,4

+ 3,0%

Higher tertiary education

44,7

39,4

Total

- 4,3%

37,7

Source: Socio-Economic panel, own calculations

Gerhard Bosch


Slide6 l.jpg

1.Changes in the labour market

1.4Positive Returns to Human Capital Investments

  • Individual returns: increase of wages

    (6,5% per additional year of schooling in EU)

  • Macroeconomic returns:

    (a)increase of aggregate productivity(5% on impact/ a further 5% in the long run in EU)

  • (b) faster technological change

  • Social cohesion: reduction of inequality and social distance improves economic performance

Caution:

Most data refer to quantity of formal schooling. Quality indicators of learning and informal learning also shows positive effects.

Source: EU 2003, Human capital in a global and knowledge based economy, Luxembourg

Gerhard Bosch


Slide7 l.jpg

1.Changes in the labour market

1.5The Human-Capital-Paradox

  • Higher individual returns in countries with deregulated labour markets (returns on additional year of schooling in Scandinavia 4% and in UK 12%)

  • Neoclassical explanation: more effective pay scales which reflect productivity differences more closely in deregulated markets

  • Alternative explanations: underinvestment in training in deregulated economies, more polarised skill structures and skill shortages

  • Human-capital-paradox: in spite of high monetary incentives for investments due to high income inequality low investment of low skilled

Fig. 4

Explanation of the paradox:

  • high investment risk because of high dispersion of returns

  • long working hours of low skilled

  • low incomes and saving rates

  • tayloristic work organization

  • lack of formal pathways for low skilled

  • high social distance

Gerhard Bosch


Slide8 l.jpg

Educational levels in West Germany and the USA, 1989

Figure 4:

45

High school

16

30

College, Associate Degree

Vocational training

69

17

Bachelor's degree

7

USA

8

Master or higher

Germany

8

Source: Freeman, R.B., Schettkat, R. (1998): Low Wages Services: interpreting the US-German

difference. Paper to the LOWER Conference Groningen. The Netherlands. Nov. 19-21

Gerhard Bosch


Slide9 l.jpg

2.Myths in the discussion on education and work

The half-life of skills and knowledge is declining

2.11st Myth:

  • Most of the general skills (languages, mathematics)last a whole life, if they are used. This is also true for the social skills.

  • Basic vocational training have a long half-life.

  • Specific vocational skills have a decreasing half-life.

Conclusion:

  • General skills have to be learned early.

  • Broad vocational skills in initial vocational training.

  • More further training to fresh up and extend specific vocational training.

Gerhard Bosch


Slide10 l.jpg

2. Myths in the discussion on education and work

One should be prepared to change occupation several times in a work life.

2.22nd Myth:

  • Might be true if occupations are very specific and are mainly based on-the-job training

  • Broad occupations make it possible to cope with structural change (further training is required)

  • Multiple occupation changes waste resource. This is as if somebody who has thrown 35 with the dices has to start again at 1

Conclusion:

Develop broad occupations

Gerhard Bosch


Slide11 l.jpg

2. Myths in the discussion on education and work

Technological development is progressing so fast

that training based on fixed curricula and certificates are no longer viable.

2.33rd Myth:

  • Some early adopters and computer kids may learn only by doing or on-the-job

  • If their are no general standards for curricula and certificates there will be de-facto standards of Microsoft, SAP, Cisco etc. Skills are not transferable

Conclusion:

Because of fast changes learning has to be changed:

  • Traditional classroom teaching has to be combined with learning in real projects

  • Curricula have to be opened for changes

Gerhard Bosch


Slide12 l.jpg

2. Myths in the discussion on education and work

Training must be increasingly oriented

along the needs of the companies.

2.44th Myth:

  • Many companies, especially SME‘s, are planning on a short-term basis and do not know their needs in the future

  • Asking them about their need is like „A blind person is asking another blind person about the way"

  • Not all companies are innovators: their needs may be formed by old technologies and traditional forms of work organisation

  • Many future companies are not yet in existence

Conclusion:

We need a pro-active supply side-approach of identifying future needs and translating these needs into curricula

Gerhard Bosch


Slide13 l.jpg

3.Removing barriers lifelong learning

3.1Market failure :Internalise training-incentives in markets

Incentives could be:

A.

In the product market:

Prevailing wage laws

Innovation policy

Minimum training requirements for bids

Licensing (such as for doctors, pilots or electricians)

Quality standards for products and services

(as in the German construction industry)

B.

In the labour market:

Safety or liability regulations

Employment protection which establishes long term relations

between employer and employee create incentives for training

(job tenure is increasing in most countries)

Avoiding free rider problem by introducing a levy

(as in the Danish apprenticeship system)

Health and safety regulations

Fig. 5

Fig. 6

Ex. Gas

Gerhard Bosch


Slide14 l.jpg

Business Enterprise Expenditure on R&D in selected OECD-countries (1981 - 1998)

Gross domestic expenditure on R&D

as a percentage of gross value added in the economy

Figure 5:

4

Sweden

Finland

Switzerland

3

Japan

USA

Germany

2

France

UK

Canada

Netherlands

1

Italy

0

*

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

* estimation

Source: OECD: Main Science and Technology Indicators (1998/1). -

National Calculations and Estimates

Gerhard Bosch


Slide15 l.jpg

Apprenticeship Training Rates and

Prevailing Wage Laws by State Legal Policy *

Figure 6:

* Apprentices as a percent

of journeymen.

4,3%

3,8%

2,8%

2,1%

Repeal States

States

States that

Repeal States

before repeal

retaining law

never had law

after repeal

Source:P. Philips: The US: A tale of two cities. In: G. Bosch / P. Philips: Building chaos (Eds.): an international comparison of deregulation in the construction industry. London: Routledge, 2003

Gerhard Bosch


Slide16 l.jpg

Bad practice:

Conclusion:

The British gas industry

  • Post-privatisation, a severely fragmented industry total businesses 43.900total employees 97.000

  • No rational employer would wish training.

  • Ageing work force more installers over 50 years than under 35 years.

  • 1999 only 128 entrants into training.

Fig. 7

  • state took over training

    1999 => 128 new entrants, 2002=> 2500 new entrants, 2004=> 4500 new entrants

Employer financed training was replaced by state financed training

Gerhard Bosch


Slide17 l.jpg

Gas: the skills problem

Figure 7:

  • 1999: 128 entrants!

  • Ageing workforce - more installers over 50 than under 35

18000

16000

14000

12000

10000

8000

6000

4000

2000

0

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65+

Gerhard Bosch


Slide18 l.jpg

3.Removing barriers lifelong learning

3.2Underinvestment in Training in SME’s

In most countries SME‘s invest less in training than big companies.

  • Money is one but not the major obstacle

  • Less need for training (high percentage of technology appliers)

  • Higher risks of investments due to higher manpower turnover

  • Low internal planning capacity

  • No economies of scale in training

  • Intransparency of training market

  • Supply not tailor-made for SME’s

  • High specialisation/ internal learning too narrow

REASONS:

Gerhard Bosch


Slide19 l.jpg

3.Removing barriers lifelong learning

3.3Creating incentives for training in SME’s

1Networks

  • Reduction of planning costs

  • Economies of scale

  • Tailor-made-supply

  • Enlargement of learning possibilities

  • Networks can develop other activities (manpower pool, joint bidding etc.)

Positive effects:

Problem:

  • Organisation of the network

2External help structure

Consultants for temporary support in developing or providing training

3Combination of (1) and (2)

Both can be financed by contributions, levies or public money

Gerhard Bosch


Slide20 l.jpg

3.Removing barriers lifelong learning

3.4Best practice: Small firm development account in UK

  • Pilot Program in Leicestershire & Lincolnshire carried out by the ”Centre for Entreprises” launched in 2002

  • A mechanism to stimulate business led workforce development in small companies (5 – 50 employees)

  • Training advisor of the Centre and ”Training Champion” appointed by the firm develop ”Training and Development Plan”

  • Company receives £ 500 after signing the plan /

    Centre pays up £ 150 per employee for external training

  • 280 Training Champions attended workshops

  • 230 approved training plan

  • Average 20 employees per business

  • Average 11 employees per plan

RESULTS:

Gerhard Bosch


Slide21 l.jpg

3.Removing barriers lifelong learning

3.5Pathways for individuals and companies

Major problem:

Intransparency of training market

makes the fit between training and work organisation for companies difficult (high transaction costs)

  • Generally or broadly recognised certificates

  • Certification and quality assurance of providers

Possible solutions

Conclusion:Both solutions have to be linked.

Gerhard Bosch


Slide22 l.jpg

Training Pathways in the German IT-Industry

Figure 8:

Strategic Professionals

Master

of Engineering

Certified IT Business Engineer

Certified IT Technical Engineer

Operational Professionals

Certified IT Marketing Manager

Certified IT Systems

Manager

Certified IT Business Manager

Certified IT Business Consultant

Bachelor

of Engineering

Specialists

29 Specialist profiles for 6 IT sections:

Software Developer, Solutions Developer,

Administrator, Co-ordinator, Technician, Advisor

Vocational Training

IT

System

Electrician

IT System integration

Specialist

IT System Support

Officer

IT

System

Officer

Source: http://kib-net.de, 2003

Gerhard Bosch


Slide23 l.jpg

3.Removing barriers lifelong learning

3.6 Learning forms: Shortcomings of traditional classroom vocational learning

  • For low skilled:

    too abstract/difficult to motivate if there is no concrete output

  • For middle and high skilled:

    lack of tacit knowledge

  • For companies:

    classroom teaching plus on-the job-training afterwards too expensive

  • For innovation in the economy:

    too slow

Gerhard Bosch


Slide24 l.jpg

Basic learning forms in vocational training

Figure 9:

Orders

Complex Products

Customer-

Small Products

Orientation

Project-

Orientation

Product-

Orientation

Class Room-

Increasing

Orientation

Work Orientation

Gerhard Bosch


Slide25 l.jpg

3.Removing barriers lifelong learning

3.7 Work Organisation (1): Exclusion of the low skilled from learning

Tayloristic model of firms

  • Complex organisation and simple jobs.

  • complexity of the organisation is grounded in the radical split between "thinking" and "doing"

  • The organisational memory is based on formal procedures, strong hierarchies and a professional elite at the top of the firm.

  • The low skilled are excluded from formal and informal learning

New model of flexible firm

  • Flexibility by the reintegration of tasks and teamwork

  • reduction in organisational complexity: coordination and communication at lower levels of the organisation

  • This organisation is based on continuous learning

Gerhard Bosch


Slide26 l.jpg

3.Removing barriers lifelong learning

3.8Work Organisation (2): Crucial role of work organisation

  • Productivity increases only if knowledge is actually used

  • Motivation to learn often comes from work experience

  • Important for low skilled: Changes in work organization (job enrichment/enlargement, rotation) make it possible to learn step by step

  • Research of the European Foundation shows that traditional forms of work organization still dominate in EU

  • Some countries are far ahead in introducing post-tayloristic forms of work organization (S, DK, FIN, NL)

  • Even in modernized companies the peripheral workers are often excluded from learning

PROBLEMS:

Gerhard Bosch


Slide27 l.jpg

3.Removing barriers lifelong learning

3.9Work Organisation (3): CONCLUSIONS

  • The state and the social partners should promote decentralized forms of work organization

  • Promotion of training for peripheral workers

  • Good example: France increased the training levy for temporary and agency workers from 1,5 to 2% of the gross wage bill

Figure 10: Employees who have received training over the past 12 months

(by contract)

35

34

31

23

All employees

Indefinite

contracts

Fixed-term

contracts

Temporary

agency contracts

Source: European Foundation: Third European survey on working conditions 2000

Gerhard Bosch


Slide28 l.jpg

3.Removing barriers lifelong learning

3.10Lack of Time and Money: SOLUTIONS

  • Entitlements for sabbaticals as in Sweden

  • Grants for further education as in Sweden

  • Saving accounts for life-long learning with subsidies of the state, own contributions and contributions of companies (Problems: embeddedness, taxation, property rights, bankruptcy, use: training vs. early retirement)

Gerhard Bosch


Slide29 l.jpg

3.Removing barriers lifelong learning

3.11Role of social partners (1)

Social partners can promote training by agreements on

  • standardized curricula and certificates (pathways)

  • saving accounts for training

  • on special programs to ”promote training for less skilled”

  • work organization

  • pay scales with incentives for learning

Advantage compared to programs run by the state or the employers:

  • better links between theory and practice

  • compromise between short term business needs and promotion of employability

  • easier implementation on industry level

PROBLEM:

Unions are marginalised in some countries.

Gerhard Bosch


Slide30 l.jpg

3.Removing barriers lifelong learning

The Collective Agreement on training in the engineering industry in Baden Württemberg 2001

Role of social partners (2):

Key elements (1):

  • The social partners agree that lifelong learning is the key for future competitiveness of the companies and the employability of the employees.

  • Each employee has the right to a regular talk with the employer on his/her individual training needs.

  • Employees in parental leave also have the right to such a talk.

  • If there are training needs, an individual training plan will be agreed upon.

  • In case there is no agreement the employers and the works council or in companies with more than 300 employees a commission (parity of seats) should try to reach an agreement.

  • If they do not reach an agreement a representative of the new "Agency to promote further training" will become a member of the commission with the right to vote.

  • The employer pays the training.

Gerhard Bosch


Slide31 l.jpg

3.Removing barriers lifelong learning

The Collective Agreement on training in the engineering industry in Baden Württemberg 2001

Role of social partners (3):

Key elements (2):

  • After successful training the employees can claim to use the new skills.

  • The social partners build up an "Agency to promote further training".

The agency should

  • consult companies,

  • develop training programmes for un- and semiskilled workers,

  • observe the structural change in the industry and propose training programmes.

  • Each employee with 5 years tenure is entitled to 3 years unpaid leave for training.

The IG Metall did not succeed in getting a paid training leave for older

workers to adapt their skills to structural change.

Gerhard Bosch


Slide32 l.jpg

4.CONCLUSIONS

  • Barriers to lifelong learning are found not only in the education and training system but also in other sub-systems of the society (work-organization, labour and product markets, industrial relations, innovation policy).

  • Removing barriers to learning is a crosscutting task which requires cooperation of actors from different subsystems and cannot be left only to education and training specialists.

  • The major challenge is to develop consistent policies in these different fields.

  • Expansion of lifelong learning may increase inequality and segmentation of labour markets.

Gerhard Bosch


  • Login