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The ILA-System in Upper Austria ILAs in the assisted area for vocational training in Upper Austria

The ILA-System in Upper Austria ILAs in the assisted area for vocational training in Upper Austria. Linz – Cultural Capital 2009. Fritz Bauer Chamber of Labour of Upper Austria CEDEFOP-SEMINAR ON INDIVIDUAL LEASRNING ACCOUNTS.

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The ILA-System in Upper Austria ILAs in the assisted area for vocational training in Upper Austria

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  1. The ILA-System in Upper AustriaILAs in theassisted area for vocational training in Upper Austria Linz – Cultural Capital 2009 Fritz Bauer Chamber of Labour of Upper Austria CEDEFOP-SEMINAR ON INDIVIDUAL LEASRNING ACCOUNTS. An incentive for financing continuing vocational education and training Thessaloniki, 31 January 2008

  2. Key data of Upper Austria GEOGRAFICAL DATA • 1.4 million inhabitants >> 17 % of the Austrian population • 11,981 sq.km >> 14.3 % of national territory ECONOMY/ LABOUR MARKET / EMPLOYMENT • 68,626 commercial companies, including some 1,000 foreign companies…. • 576,203 Employees -> employment rate 72 % • Lowest unemployment rate in Austria since 2000 >> constantly below 5 % >> actual unemployement rate (12/2007) 4,7 % • 32,6 € bn gross domestic product (2003) • Growth rates significantly above national level • Leading industrial region in Austria • Export 17 billion € per year >> 26 % of total Austrian exports QUALITY of LIFE • Outstanding quality of life, • high environmental standards

  3. Assisted (regional) areas for vocational training in Upper Austria • Supporting Individual Learners • UA Training Account (UA TRAc), AK-Trainingbonus (AK-TRBo), AK-Memberdiscount for Training (AK-MeDi) • Supporting business • Wirtschaftsimpulsprogramm, Technologieförderprogramme, brachenbezogene Weiterbildungsverbünde, Firmenausbildungsverbund, Stiftungen • Taxation supports • Absetzbetrag, Prämie, Bildungssparen • Trainings via Labor Market Service • TEP – Territorialer Beschäftigungspakt • Information & Advise on learning & supporting opportunities • AK-Database for Learners Support • http://www.arbeiterkammer.com/www-1174.html# • Special projects & Research & Development on vocational training • Supporting Individual Learners • UA Training Account (UA TRAc–> oö Bildungskonto) • AK-Trainingbonus (AK-TRBo –>AK-Bildungsbonus) • AK-Memberdiscount for Training (AK-MeDi –> • AK-Leistungskartenrabatt)

  4. 1992 negotiations between the Chamber of Labor an the Regional Goverment of UA >> Programm started 1994 Goal > to give individual learners financial support by 50 % of their personal costs of vocational training up to a defined maximum ammount in a 4 years period Primary targetgroup skilled (and unskilled) workforce („Fachkräfte“ - upper secondary & tertiary educated excluded ) Lively development of the scheme Quality assurance by introducing a mandatory „UA Quality Seal“ for training institutions Since 1999 supporting special targetgroups (eg. Women returners to work, 40+ ..) and innovative projects 2004 extended for Workforce with Upper Secondary Education 2005 extension of support rate for 40+ and unskilled to 80 % Development of the UA TRAc

  5. Actual Scheme of the Upper Austrian Training Account (UA TRAc = oö Bildungskonto) – Status 2008 (+ 2009) * Value of a joint account for women returners to work under 40;

  6. Key Data for the UA-TRAc • Joint use of all 4 different tools ist possible ! • Training is (pre-)paid by the trainee • Reimbursement after succefully finishing • Goverment files personal accounts for the learners • Average payment to trainee 2007 >> € 468.- • 2007 >> 23.000 Applications = + 12 % • Budget 2007 >>> € 9,05 Mio. = + 7 % • Accounts will rise 2007-09 >> + 21% • Payment to trainees 1994-2007 >> € 64, 7 Mio • Induced turnover in vocational training by UA TRAc since 1994 approx. 170 Mio €

  7. Budget for UA TRAc in 1000 €

  8. AK-Training-Bonus (AK-TRBo - AK-Bildungsbonus) For members only 100 € / Year - max. 40% For AK-Plus-Program only: Selected Courses in IKT, PD, Language, vocational basics At selected educational institutions (BFI, VHS, Wifi) Special activities for targetgroups like migrant-workers.. Budget 2007>> 750.000 € User 2007 >> 11.000 Members AK-Memberdiscount for Training(AK-MeDi –AK-Leistungskartenrabatt) For members only 10 % of discount but a limit of 75.- € for one course Unlimited nummer of vocational and non-vocational courses/y At the ak-owned educational institutions BFI, VHS-OÖ, VHS Linz Budget 2007 > 560.000.- € Users 2007 > 35.000 Members The Chamber of Labors Support of Vocational Training Combined Effects of UA TRAc, AK-TRBo and AK-MeDi

  9. Example for combined effectsof UA TRAc, AK-TRBo and AK-MeDi Assumption 1: Female worker, below 40, skilled Price (course out of AK-Plus-Program)€ 299,00 - 10%AK-MeDi - € 29,90 = „AK-Price“€ 269,10 - AK-TRBo - € 100,00 - 50% UA TRAc from AK-Preis #) - € 134,50 Personal price after support € 34,55 Alternative Assumption 2:unskilled OR 40+ - 80 % UA TRAc from AK-Preis *) € 169,10 *) Personal price after support € 0,00 #) 793,50 left on the personal General UA TRAc for following trainings; *) Maximum Support up to Zero !! 1. 081 left on the personal General UA TRAc for following trainings; Special TRAc in both cases still available for eligible trainings.

  10. Benchmarks for State-ILAs in Austria

  11. Some Effects of co-financing vocational training in UA • 155.000 Employees/Y are in UA active in voc. training courses • 1/7 of them uses the UA TRAc • ½ of them (10.000) uses additional the AK-TRBo • That creates increased support of selected training content and targetgroups through combined effects • Additional 25-30.000 are mere users of the AK-MeDi • All in all >> approx. 1/3 of the active employees use some kind of individual financial support from the state UA or the chamber of labor for their vocational trainings • This is employee decided training and additional to business based training and training offered by the labor market service • Statements in recent Research Works *) • Involvement in training in UA is 5 % higher than in the rest of Austria (training-rate) *) Austrian Institute of Economic Research, Labor Market Policy in UA, September 2006, S 121f

  12. Compared Training Rates UA - AUSTRIA Quelle: WIFO (Fritz, Huber, Huemer), Arbeitsmarktpolitik in Oberösterreich, September 2006, S 104ff; mit bezug auf Mikrozensus 2005; bzw. IBE 2005 – WB-Beteiligung im letzten Jahr, vgl. Mikrozensus 2003

  13. Training Rates of Young Employees (31-35) by Income (Y) and Time of Last Training (1) last Year -> x = 42 % (2) last 3 Years -> x =63 % (3) last 10 Years - > x =79 % (4) Never –> x = 17 %

  14. tax deduction for training expenses 0 % 38,3 % 43,6 % 50 %

  15. Some empirical effects of co-financing training expenses of employees in UA Evaluation of UA TRAc > 1/200 – 8/2003 • typical social-structure of users • Restricted access in some districts • Top content: IT, technic, language, BRP Evaluation of AK-TRBo – certain dimensions in real time • Significant older and more female workers • Differences in regional access Different surveys & national or regional data-mining • Participation rate in UA 5 % higher • Signifcant longer trainings in UA • No sign. difference in 4-week-indicator (EU) • Women participate less in bussiness based trainings • ............

  16. Some empirical effects .... - 2 Joint Evaluation of AK-TRBo & AK-MeDi > 2005 & 2006 Still in progress >> n: 553.451 !! First results > • 6,9 % of members received payments; 11,5 % participated in training Strong evidence for >> more female workers (10,6 %) -.143***, more younger than older w (25-34-years old: 8,2 %; -021***, more white c.w. (8,3 %), small enterprises (7,2 %), some districts less migrant worker (3,3 %), male workers (3,8 %), blue c.w. (4,9 %), 50-54 years old (5,5 %), some districts...

  17. User of ILAs by Gender uaTRA & AK-TrBo & AK-Members im Vergleich

  18. Distribution of Age-Groups 2003

  19. Some Conclusions and Questions ?? • Bring it all together to one picture – see how the training & life long learning system could work more effective by ILAs • There is a need for compensation in life long learning and training – what can ILA cover ? • Why do ILAs/co-financing work better with females ? • Knowledge-based sensible steering of co-financing programs is important – but who holds the steering wheel ? • How much training-unites can the disposable income of an employee buy ? • With or without ILA ? What is the ROI and for whom ?

  20. See You in Linz 2009 Thank You Cultural Capital 2009

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