Skills for the Future? A Life Cycle Perspective on Systems of Vocational Education and Training

Abstract

In this article, the authors ask how the institutional design of vocational education and training (VET) affects worker adaptability to changing skill demands over the life cycle. They compare two types of VET systems. Collectivist systems have high employer involvement and focus on specific skills, whereas Statist systems have lower employer involvement and focus more on general skills. Based on prior research demonstrating the importance of general skills in learning new skills, the authors hypothesize that worker adaptability will be higher in Statist VET systems than in Collectivist VET systems. Using a triple-difference model on data from the Program for the International Assessment of Adult Competencies, they find that as age increases, a significantly steeper decline in worker adaptability occurs within Collectivist systems compared to Statist systems. Results provide an explanation behind the diminishing employment returns to employer-dominated VET systems found in prior studies.

Dissecting the compensation conundrum: a machine learning-based prognostication of key determinants in a complex labor market

“…In this regard, it is evident that the integration of niche skills in the ML-based CPM aligns with the SBPT and is expected to engender favorable outcomes for both employees and organizations. Moreover, this reinforces earlier literature (Gurantz, 2022;Chuan and Ibsen, 2022;Silliman and Virtanen, 2022;Choi and Park, 2021;Deming and Noray, 2020;B€ ockerman et al, 2018;Rzepka, 2018;Brunello and Rocco, 2017;Hanushek et al, 2017) that underscores the critical role of skills in the labor market. Well-educated and expertly trained personnel receive greater remuneration since they generate innovative ideas, manage large firms, provide healthcare, handle financial and insurance matters, oversee government operations and execute other crucial responsibilities.…”

“…Past research has evinced that individuals who undertake vocation-oriented education tend to garner the most substantial dividends (Chuan and Ibsen, 2022;Silliman and Virtanen, 2022;Gurantz, 2022;Choi and Park, 2021;Deming and Noray, 2020;Rzepka, 2018;Hanushek et al, 2017). For instance, computer science, engineering and business graduates typically command higher initial salaries due to the knowledge and competencies they acquire during their educational pursuits (Deming and Noray, 2020).…”

“…Past research has evinced that individuals who undertake vocation-oriented education tend to garner the most substantial dividends (Chuan and Ibsen, 2022; Silliman and Virtanen, 2022; Gurantz, 2022; Choi and Park, 2021; Deming and Noray, 2020; Rzepka, 2018; Hanushek et al. , 2017).…”

“…Niche skills and job roles are pivotal determinants of compensation, given utmost importance in its determination. Concomitantly, a plethora of scholars (Gurantz, 2022; Chuan and Ibsen, 2022; Silliman and Virtanen, 2022; Deming and Noray, 2020) have underscored the critical role of skills in compensation determination. Additionally, Maloa and Rajah (2012) have validated the significant relationship between niche skills, job roles and employee compensation, identifying them as among its determinants.…”

Education as social policy: New tensions in maturing knowledge economies

“…On the one hand, the direct involvement of employers and the significant amount of workplace training means that what is taught in school has a high level of labour market relevance. On the other hand, increasing skill specificity may also downgrade provision of general skills shown to be important in the knowledge economy and across the lifecycle of VET graduates (Chuan & Ibsen, 2022; Hanushek et al, 2017; Rözer & Bol, 2019). Moreover, such systems tend to track students relatively early, which has been shown to have significant negative impact on social mobility (Pfeffer, 2008).…”