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Leading House « Economics of education » « Transitions, skills and labour market »

Leading House « Economics of education » « Transitions, skills and labour market » Göttingen, September 25 th - 28 th - Research on Vocational Education and Training for and as International Comparison Jean-Marc Falter – Yves Flückiger.

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Leading House « Economics of education » « Transitions, skills and labour market »

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  1. Leading House « Economics of education » « Transitions, skills and labour market » Göttingen, September 25th- 28th - Research on Vocational Education and Training for and as International Comparison Jean-Marc Falter – Yves Flückiger

  2. Taking a labour market perspective, our Leading House endeavours to analyze the determinants and the impact of vocational education in Switzerland Our research activity started in September 2006 We cover three research themes: Transitions from school toward the labour market Workers’ skills Firms behaviour with respect to vocational education and lifelong training Introduction

  3. Research projects: overview and goals Skills and the labour market: Employer learning: does widespread apprentice education change the picture? The content of education: what enhances worker success? Research agenda Outline of the talk

  4. People and institutions University of Geneva Prof. Yves Flückiger: Director Prof. Siegfried Hanhart Dr. Jean-Marc Falter Geneva School of Business Administration Prof. José Ramirez: 1. Research

  5. Approach We take a biographical approach: mandatory education, transition toward post-secondary education, labour market entry and labour market outcomes We exploit readily available database: PISA, TREE (TRansition to Education and Employment), ALL (Adults literacy and lifeskills survey) We are producing our own data with respect to firms’ behaviour Micro-econometric studies 1. Research

  6. School to work transitions (1/2) The performance of the schooling system has often been assessed by means of standardized cognitive tests (PISA) However, the performance of the schooling system goes well beyond these measures It must provide the labour market with the required skills and ensure a smooth transitions to the labour market 1. Research

  7. School to work transitions (2/2) We analyze the capacity of the Swiss schooling system to ensure smooth transitions inside the schooling systems (transitions towards post-mandatory education)… … as well as transitions towards the labour market We put a special emphasis on economic variables affecting these transitions such as unemployment, labour market structure Building up on the literature, we also look into the impact of changing tasks on the workplace on the demand for apprentice 1. Research

  8. School to work transitions : papers and publications M. Meunier (2006) "Fonctions de production éducationnelle: le cas de la Suisse", Swiss Journal of Economics and Statistics, 142 (4), pp. 579-615. (version "working paper": LH Working paper no. 06_03) M. Meunier, (2007) "Are Swiss Secondary Schools Efficient?" à paraître dans Governance and Performance of Education Systems, Nils Soguel et Pierre Jaccard (eds), Springer. M. Meunier, (2007), "Les effets des externalités de proximité sur l'(in)efficience des écoles secondaires suisses", LH Working paper no. 07_04, University of Geneva. 1. Research

  9. Educational attainment and adult skills (1/2) Skill biased technological change (SBTC) is a major challenge to any schooling system It may affect apprenticeship education through a shift in the labour demand as well as through lower wages for apprentice workers This leads to two research questions: What type of education cope better with SBTC? What kind of skills is valued on the labour market? Results should allow to better tailor the content of vocational education 1. Research

  10. Educational attainment and adult skills (2/2) Two ways to answer these questions: Returns to (or effect of) skills: determine means by which education enhances worker success (1) Wage profile: returns to skills and education types in SBTC environment (2) (1) is based on ALL data (2) is based on official wage statistics as well as private sources (R+D survey) 1. Research

  11. Educational attainment and adult skills: papers and publications Falter, J..-M. (2006), "Employer learning and literacy scores in Switzerland", LH Working paper no. 06_01, University of Geneva. C. Pasche, (2007), "A New Measure of the Cognitive and Non Cognitive Components of Education", LH Working paper no. 07_02, University of Geneva. Falter, (2007), "Mismatch and Skill Utilization: Determinants and Consequences", LH Working paper no. 07_03, University of Geneva. Falter, J.-M et C. Pasche, (2007), "Formation, compétences et marché du travail (titre non définitif)", Office fédéral de la statistique, Neuchâtel, forthcoming. 1. Research

  12. Firm behaviour and vocational education We focus on lifelong learning We currently work on gathering new data Our research questions are: Lifelong training and apprenticeship: do apprentice degree holder entail larger investments in lifelong training? Wages: how are shared potential productivity gains from lifelong training? 1. Research

  13. Introduction Before tackling the specificity of vocational education, we must acquire a broad understanding of the mechanism at work Vocational education is supposed to have many virtues on the labour market: reduce asymmetric information, better job matching, etc. Does widespread apprenticeship really make a difference? 2. Skills and the labour market

  14. Employer learning (1/4) Assessing the signalling content of education is a central question in economics Does education improve ones productivity or does it solely signals some ability to potential employers? Signalling questions the legitimacy of education investments It could also lead to other problems like skill mismatch 2. Skills and the labour market

  15. Employer learning (2/4) A traditional test of this model consists in investigating employer learning: is education an accurate measure of skills or do employers gradually learn about their worker productivity? The literature has produced distinct results between Germany and Anglo-Saxons countries: these discrepancies were interpreted in the light of apprenticeship education We test more thoroughly this hypothesis: does apprenticeship education reduce asymmetric information? 2. Skills and the labour market

  16. Employer learning (3/4) Our results show that the employer learning hypothesis is valid in Switzerland We show that the returns to initially unobserved characteristics (in our case literacy) increase with time while the returns to education decrease with time Different results from Germany mainly come from the research instrument 2. Skills and the labour market

  17. Employer learning (4/4) Analysis by education types show little difference between vocational education and academic education while there is differences between types of workers (blue/white collars) Actually, we find weak evidence of more acute information problems among apprenticeship 2. Skills and the labour market

  18. The “cognitive” and “non-cognitive” component of education It is well known that education enhances worker success Yet, little is know about what triggers labour market advantages We distinguish between basic skills (literacy variables available in ALL) and other skills 2. Skills and the labour market

  19. F YS y X 2. Skills and the labour market Mincer, 1974 y: wages, YS: years of schooling, X: years of experience, F: family background

  20. F YS y TCS X 2. Skills and the labour market Gintis 1971 et Bowles et al. 2001 Y: wages, YS: years of schooling, TCS:total cognitive skills, X: years of experience, F: family background

  21. F YS y SCS X 2. Skills and the labour market Pasche 2007 y: wages, YS: years of schooling, SCS: schooling cognitive skills, X: years of experience, F: family background

  22. NSCS F YS y SCS X 2. Skills and the labour market Pasche 2007 y: wages, YS:years of schooling, SCS:schooling cognitive skills, NSCS: non-schooling cogntive skils, X: years of experience, F family background

  23. The “cognitive” and “non-cognitive” component of education: summary (1/2) We show that vocational education has little impact in improving basic skill levels Taking naïve estimates, basic skills make up only 10% of the wage premium attached to vocational education compared to high school drop-outs Disentangling between “schooling cognitive skills” and “non-schooling cognitive skills”, we show that cognitive skills make up a large part of the wage premium (approximately 50%) 2. Skills and the labour market

  24. The “cognitive” and “non-cognitive” component of education: summary (2/2) Basic skills are much better rewarded when certified The ratio between of the returns to schooling cognitive skills and the returns to non-schooling cognitive skills is equal to 4 Policy implications: basic skills are an important aspect of education, even for vocational education Moreover, non-schooling cognitive skills are not rewarded at labour market entry 2. Skills and the labour market

  25. Themes that should be investigated (or investigated further) Skills: mismatch and apprenticeship should be investigated with alternative data capturing change in the demand for apprenticeship workers (SLFS, LSE) Transitions: disentangling economic factors from more sociological factors such as parents’ role model, pure intergenerational effects, etc. Analysis have started with Swiss household panel Search for new data: impact of the schooling system on secondary school transitions 3. Research agenda

  26. http://www.unige.ch/ses/lea/lh/

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