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How can we establish strong linkages between actors from the education and employment systems? Workshop with Prime Minister Vučić, at the Chamber of Commerce and Industry of Serbia, Belgrade 12.09.2016 Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

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How can we establish strong linkages between actors

from the education and employment systems?

Workshop with Prime Minister Vučić, at the Chamber of Commerce and Industry of Serbia, Belgrade 12.09.2016

Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

||

1. Functions of education systems and the purpose of

VET

2. Comparing VET systems

2.1 Analytical framework to compare VET systems

2.2 KOF Youth Labor Market Index

2.3 KOF Education-Employment Linkage Index

3. Why is Switzerland so strong?

4. How can we establish strong linkages between actors

from the education and employment systems?

5. Possible next steps in Serbia

Overview

Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09.2016 2

||

There are three main functions of the education system.

We analyze them to find out the extent to which:

a. individuals are enabled to independently shape their own

biographies, their relationships to their environments, and lives in the

community (individual control ability),

b. the abilities required on the labor market are made available, thus

securing the volume of labor, quantitatively and qualitatively,

that is necessary for prosperity and social development

(human capital), and

c. social participation is ensured, including the aspect of social

cohesion (equality of opportunity / equity).

Functions of education systems

Source: Klieme et al. 2006

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 3

||

Hence, the main focus is on preparing young people for

the labor market by organizing a meaningful and

effective educational process.

However, offering progression routes within the whole

education system (permeability no dead end

education) makes VET attractive for all youngsters.

What is the purpose of VET?

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 4

||

Curriculum Design

Phase

Curriculum Application

Phase

Curriculum Feedback

Phase

Outcomes

on the labor market

Meaningful and effective educational processes:

The concept of the VET Curriculum Value Chain

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 5

||

1. Functions of education systems and the purpose of VET

2. Comparing VET systems

2.1 Analytical framework for comparing VET systems

2.2 KOF Youth Labor Market Index

2.3 KOF Education-Employment Linkage Index

3. Why is Switzerland so strong?

4. How can we establish strong linkages between actors

from the education and employment systems?

5. Possible next steps in Serbia

Overview

Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09.2016 6

||

Analytical Framework: Comparing VET Systems

Governance

Educational

Processes(Curriculum Value Chain)

Theoretical

Framework

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 7

||

Encoding Programming

Reflection of unit Professional Career Education

Structuring of

operations

Pass / Fail VET Curriculum

Encoding Programming

Reflection of unit Wage Labor Market

Structuring of

operations

Payment /

Non-payment

Skills supply and

demand for labor

Coupling or linkage

mechanisms

VET system code and programming (own depiction)

Employment system code and programming (own depiction)

System Theory:

Linkage between Education & Employment Systems

Ed

uc

ati

on

Em

plo

ym

en

t

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 8

||

Curriculum Design

Phase

Curriculum Application

Phase

Curriculum Feedback

Phase

Outcomes

on the labor market

VET Curriculum Value Chain leads to outcomes

on the labor market (employment system)

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 9

||

1. Functions of education systems and the purpose of VET

2. Comparing VET systems

2.1 Analytical framework for comparing VET systems

2.2 KOF Youth Labor Market Index

2.3 KOF Education-Employment Linkage Index

3. Why is Switzerland so strong?

4. How can we establish strong linkages between actors

from the education and employment systems?

5. Possible next steps in Serbia

Overview

Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09..2016 10

||

Correlation between Youth Unemployment Rate

and KOF Youth Labor Market Index

0

1

2

3

4

5

6

7

8

0 10 20 30 40 50 60 70

KO

F Y

ou

th L

ab

ou

r M

ark

et

Ind

ex

Youth Unemployment Rate

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 11

||

The KOF YLM Index Tool

Interactive web tool for your

personal use:

http://viz.kof.ethz.ch/public/yunemp/

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12

||

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00Unemployment rate

Relaxedunemployment

rate

NEET rate

Temporaryworker rate

Involuntarypart-time

worker rate

Atypical workinghours rate

In workat risk of poverty

rate

Vulnerableemployment rate

Formal educationand training

rate

Skills mismatchrate

Relativeunemployment

ratio

Incidence of long-term

unemployment…

Switzerland2013

Finland2013

KOF Youth Labor Market Index – Spiderweb Chart of Scores 2013

The further a value is from

the center, the more positive

the situation is for the

relevant indicator. If the value

is zero, this means that no

data are available for this

indicator in the country

Concerned.

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 13

||

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Nr.

of

ava

ila

ble

in

dic

ato

rs u

se

d in

th

e

ca

lcu

lati

on

of

the i

nd

ex

Yo

uth

La

bo

r M

ark

et

Ind

ex

Switzerland Finland France Italy

KOF Youth Labour Market Index over time

(Source: Renold, Ursula, Bolli, Thomas, Egg, Maria Esther, Pusterla, Filippo: On the Multiple Dimensions

of Youth Labor Markets, KOF Studies, 51, Zurich, 2014)

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 14

||

Correlation: VET approach and KOF YLMI - I

Quelle: OECD (2015)

Percentage of school-based VET

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 15

||Source: OECD (2015)

Percentage of combined school-/workplace-based VET

Correlation: VET approach and KOF YLMI - II

Switzerland

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 16

||

1. Functions of education systems and the purpose of VET

2. Comparing VET systems

2.1 Analytical framework for comparing VET systems

2.2 KOF Youth Labor Market Index

2.3 KOF Education-Employment Linkage Index

3. Why is Switzerland so strong?

4. How can we establish strong linkages between actors

from the education and employment systems?

5. Possible next steps in Serbia

Overview

Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09..2016 17

||

Education system Program: Curriculum

Code: Passing/failing: career

Employment system Program: Labor market

Code: Payment/Non-Payment: Wages

Generally, linkage is in all the

processes where actors from the

education and employment

systems interact in VET.

It should help improve graduates’

labor market outcomes.

What is education-employment linkage?

Labor Market Outcomes

Hyp

oth

esis

Education

System

Employment

System

Linkage

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 18

||

Defining linkage:

An equilibrium of power

between actors from the

education system and

employment system during

VET processes.

What goes into power

sharing?

Linkage as an equilibrium of power

Education Employment

Lin

kag

e

Power

Optimal

Linkage

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 19

||

Dimensions and subdimensions

Dimensions

Su

bd

ime

ns

ion

s

Curriculum Design

Phase

Curriculum Application

Phase

Curriculum Feedback

Phase

Qualification standards determination

Examination form determination

Involvement quality

Learning place

Workplace regulation

Cost sharing

Equipment provision

Teacher provision

Examination

Information gathering

Update timing

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 20

||

KOF EELI: Results by country

0

1

2

3

4

5

6

7Focus Countries

Secondary Countries

Average

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

KO

F

EE

LI

(Education

-Em

plo

ym

ent

Lin

kage Index)

21

||

Results for the Netherlands

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 22

||

Correlations between KOF EELI and KOF YLMI

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 23

||

1. Functions of education systems and the purpose of VET

2. Comparing VET systems

2.1 Analytical framework for comparing VET systems

2.2 KOF Youth Labor Market Index

2.3 KOF Education-Employment Linkage Index

3. Why is Switzerland so strong?

4. How can we establish strong linkages between actors

from the education and employment systems?

5. Possible next steps in Serbia

Overview

Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09.2016 24

||

Results for Switzerland

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 25

||

Governance: Impact on Curriculum Value Chain

Government(central)

Companies

Schools,

providers

Professional

organizations(Trade Unions)

Cantons

SFIVET

Curriculum Design

Phase

Curriculum

Application Phase

Curriculum

Feedback Phase

Outcomes

VPET multilevel governance

Public-private

Partnership

defined by law

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 26

||

Public-Private-Partnership:Setting stimulating incentives for VET success

Training costs are shared among

public and private partners.

Firms profit during training from

apprentices’ productive output.

Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09..2016 27

||

Job Market Monitor Switzerland 1950-2014

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Perc

en

tag

eo

fjo

bo

ffer

Poly. (compulsory education) Poly. (apprenticeship TVET)

Poly. (higher education (tertiary A or B)) Poly. (experience)

Poly. (Soft Skills)

Source: Stellenmarkt Monitoring, Universität Zürich Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09.2016

Not easy to teach in school

28

||

1. Functions of education systems and the purpose of VET

2. Comparing VET systems

2.1 Analytical framework for comparing VET systems

2.2 KOF Youth Labor Market Index

2.3 KOF Education-Employment Linkage Index

3. Why is Switzerland so strong?

4. How can we establish strong linkages between actors

from the education and employment systems?

5. Possible next steps in Serbia

Overview

Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09..2016 29

||

How can we establish strong linkages?

The main features of VET in top performing countries are:

• Employers are involved in

setting qualification standards

deciding when an update needs to happen

setting examination form

• Students spend most of their time in the workplace instead

of the classroom

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

Most important factor:

Employers and their associations must be involved!

30

||Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09.2016

How to establish strong linkages:

1) Start by launching a dialogue among stakeholders

The first and most important step to digesting KOF EELI results

(or other research results) for any country is launching

a dialogue among stakeholders on questions such as:

• Do we agree with the findings? If no, why?

• Are there any results we find surprising?

• Are there any bad results that we already knew about?

• Do we have a strategy on where to start to reform the system?

• Do we have all the information we need to start a reform process?

• Do we have enough resources and expertise to start a

reform process?

• Do we have a strategy how to organize “buy-in” from companies?

31

||

Skills

Discussion about the role of employers:

Consumer of skills OR Producer and Consumer

Labor

Market

Education

System

Supply of

Skills

Employ-

ment

System

Demand

for Skills

Skills

Skills

Education

System

Supply of

SkillsEmploym

ent

System

Employ-

ment

System

Labor

Market

Skills

Employers as consumers of skills Employers as producers and

consumers of skills

Cooperation

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 32

||

1. Functions of education systems and the purpose of VET

2. Comparing VET systems

2.1 Analytical framework for comparing VET systems

2.2 KOF Youth Labor Market Index

2.3 KOF Education-Employment Linkage Index

3. Why is Switzerland so strong?

4. How can we establish strong linkages between actors

from the education and employment systems?

5. Possible next steps in Serbia

Overview

Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09..2016 33

|| 3412.09.2016

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Unemployment rate

Relaxedunemployment

rate

NEET rate

Temporaryworker rate

Involuntarypart-time

worker rate

Atypical workinghours rate

In workat risk of poverty

rate

Vulnerableemployment rate

Formal educationand training

rate

Skills mismatchrate

Relativeunemployment

ratio

Incidence of long-term

unemploymentrate

Serbia 2012

Serbia 2013

KOF Youth Labor Market Index:

Spiderweb Chart of Scores 2012 and 2013 for Serbia

The further a value is from

the center, the more positive

the situation is for the

relevant indicator. If the value

is zero, this means that no

data are available for this

indicator in the country

Concerned.

||

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00Unemployment rate

Relaxedunemployment

rate

NEET rate

Temporaryworker rate

Involuntarypart-time

worker rate

Atypical workinghours rate

In workat risk of poverty

rate

Vulnerableemployment rate

Formal educationand training

rate

Skills mismatchrate

Relativeunemployment

ratio

Incidence of long-term

unemployment…

Switzerland 2013

Finland 2013

France 2013

Italy 2013

KOF Youth Labor Market Index – Spiderweb Chart of Scores 2013

The further a value is from

the center, the more positive

the situation is for the

relevant indicator. If the value

is zero, this means that no

data are available for this

indicator in the country

Concerned.

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 35Serbia 2013

|| 36Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09.2016

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Nr.

of

av

ailab

le i

nd

icato

rs u

sed

in

th

e c

alc

ula

tio

n

of

the in

dex

Yo

uth

Lab

ou

r M

ark

et

Ind

ex

Years Serbia

KOF Youth Labor Market Index over time for Serbia

(limited No. of indicators)

|| 37Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09.2016

Which is the most relevant

program to be reformed?

What are- long-term (10-15 years)

- Mid-term (8 years)

- Short-term (3 years) reform goals?

|| 38

Analytical Pre-Reform Phase I

Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09.2016

• How is the current program compared to international

benchmark countries positioned (diagnoses)?

(possible instrumemt: EELI current state)

• How should the current program be reformed in 10-15 years,

e.g. long-term goal (possible instrument: EELI future state)?

• What is the willingness to train among Serbian companies?

(possible instrument: EbS Survey, Potential of businesses)

• What resources (financial and non-financial) are available to

secure to long-term goal achievement?

• What is the governance of the new reform scheme?

||

Governance: Impact on Curriculum Value Chain

Government(central)

Companies

Schools,

providers

Professional

organizations(Trade Unions)

Provinces,

districts

Teacher Uni

Curriculum Design

Phase

Curriculum

Application Phase

Curriculum

Feedback Phase

Outcomes

VET multilevel governance

Public-private

Partnership

defined by law

12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 39

|| 40

Analytical Pre-Reform Phase II

Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09.2016

What kind of processes along the Curriculum Value Chain need

to be organized in order to implement the new reform?

Curriculum Design

Phase

Curriculum

Application Phase

Curriculum

Feedback Phase

Qualification standards

determination

Examination form determination

Involvement quality

Learning place

Workplace regulation

Cost sharing

Equipment provision

Teacher provision

Examination

Information gathering

Update timing

||

pilot project(s) I

Long-term strategy and inter-generation project –

Education needs time

41

2017 2018 2019 2020 2021 2022 2023 2024

Trailblazers – pilot II

Evaluation/Research: what works?

Up-scaling and country/state-wide

introduction

New legislation ?

commitment of all partners

Public campaign Status of

VET

Most challenging

Aspect of a reform

Measuring

Outcome-

Effects on a

Makro-level

New VET

pathway

2025

Analytical &

preparation phase

|| 42

Preparation Phase I

Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich 12.09.2016

• Who is in charge with the management of the pilot phases?

• What is the project organization and project planning

(implementationplan)?

• Where are the financial resources for the pilot phase coming

from?

• Who is part of the reform team (leader, manager, project

owner, collaborators)?

• What kind of communication strategy is planned to support

the reform process?

|| 12.09.2016Dr. Ursula Renold, Swiss Economic Institute, ETH Zurich

If you want to have a deeper understanding

about what matters within reform processes

and how to apply that knowledge to your

own country, please join us at the next

CEMETS Summer Institute 2017

43

How to establish strong linkages:

Work with us on your own reform case

Thank you for your attention and

I wish you success with your VET reforms!

For more information please contact me:

[email protected]

www.cemets.ethz.ch