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Why is the Swiss Apprenticeship System held in such high regard? Introduction

Why is the Swiss Apprenticeship System held in such high regard? Introduction Dr Bill McGinnis CBE, NI Adviser on Employment and Skills. Office of the Northern Ireland Adviser on Employment and Skills. 5 ingredients for a successful apprenticeship system. Stefan Wolter

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Why is the Swiss Apprenticeship System held in such high regard? Introduction

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  1. Why is the Swiss Apprenticeship System held in such high regard? Introduction Dr Bill McGinnis CBE, NI Adviser on Employment and Skills Office of the Northern Ireland Adviser on Employment and Skills

  2. 5 ingredients for a successful apprenticeship system Stefan Wolter Centre for Research in Economics of Education 29.9.2014, Belfast

  3. 1 Apprenticeship is not for dummies

  4. VET for dummiesVicious circle

  5. VET for all talents2/3 of all students choose an apprenticeship Source: Swiss Education Report 2014

  6. How can we attract talents into VET? • VET: the need for permeable education systems Permeability between sub-systems Universities of applied science Academic universities Professional education Dual and school based vocational education University entrance diploma Compulsory schooling (9 y)

  7. The «US» view of skillsHierarchy of skills

  8. The Swiss-German – view:A mix of skills of equal importance

  9. 2 Apprenticeship is steered by real employers

  10. Strength of employers’ influence on content, curricula and jobs Source: Calculationsfrom OECD 2010

  11. Employer(s): Collective skill formation vs. single firms decisions • Employers decide on everything, but there is a price to pay • The government never talks to single employers! • Collective skills formation is the condition for: • Common definitions and standards across the industry • Long term visions vs. short term interests • Quality assurance by peer-review of skills acquisition • Portability of skills (labour market mobility) (2/3 of the apprentices leave their training company after the apprenticeship)

  12. 3 Apprenticeship pays off for employers

  13. Cost-Benefit – The simple model

  14. Average cost and benefit per apprentice for training firms in Switzerland (2009) Source: Strupler & Wolter, 2012

  15. Cost-Benefit – The augmented model

  16. Recrutive opportunity benefits per trained apprentice (2009) Source: Strupler & Wolter, 2012

  17. Training companies train because it is profitable – Non training companies do not train because it is not for them Source: Wolter et al., German Economic Review, 2006

  18. 4 A market - with A system monitoring

  19. A volatile world needs system-monitoring Source: Swiss Education Report 2014

  20. Early decisions with good matches (~ 230 different occupations) Source: Swiss Education Report 2014

  21. High levelsofsatisfaction Source: Swiss Education Report 2014

  22. 5 The combination of Apprenticeship and Academic Education creates a win-win-situation

  23. The advantages of a skill mix in an economy

  24. Geographical proximity leads to growth and innovation: Myth or truth? “A growing number of American companies are moving their manufacturing back to the United States - Innovation suffered from the distance between manufacturing and design, and quality became a problem too.” (The Economist, 19.1.2013)

  25. Average public costs for VPET training and the share of company based training Source: Swiss Education Report 2014

  26. Excellence in all sectors of the education system (if focused) Source: Swiss Education Report 2010

  27. Summary • Apprenticeship training must be attractive also for high achievers • Apprenticeship needs collective employers engagement • Apprenticeship must pay off in the short run • The invisible hand is not enough (monitoring) • Apprenticeship is an integral part of the education system generates advantages for everyone

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