Cost-Benefit Analysis and Tools - the Swiss experience
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1 Cost-Benefit Analysis and Tools - the Swiss experience Prof. Dr. Juerg Schweri Cedefop Workshop, Thessaloniki, 24/25 Nov 2014 Workshop: Cost-Benefit Analysis Juerg Schweri 1
2 Structure of the talk 1. Motivation for Cost-Benefit Analyses in Switzerland 2. Experience from large-scale CB Surveys 3. Experience with a tool for Cost-Benefit simulations 4. Summary Workshop: Cost-Benefit Analysis Juerg Schweri 2
3
4 1. Motivation for CBA Firms are entirely free to offer apprenticeship places ~70000 firms train apprentices (Mueller & Schweri 2012), 2/3 of a cohort opt for apprenticeship training About 250 apprenticeship programmes are defined in national training ordinances Professional associations have a large influence in developing training ordinances, especially in defining training objectives and curricula What are determinants of firms willingness to train apprentices, and what is the role of economic incentives? How can the stakeholders of the VET system ensure that firms remain willing to train apprentices? Workshop: Cost-Benefit Analysis Juerg Schweri 4
5 2. Existing large-scale CB surveys of host companies Since 2000: four national surveys on costs and benefits by the University of Bern or SFIVET (Schweri et al. 2003, Mühlemann et al. 2007, Fuhrer & Schweri 2010, Strupler & Wolter 2012) Further surveys by SFIVET targeted at specific occupations (ex. nurse training) Most recent national survey: Strupler and Wolter (2012) 2400 Swiss host companies (random sample) provided data on costs and benefits for training their apprentices Scientific publications: see literature in EENEE Analytical Report No. 16, prepared for the European Commission Workshop: Cost-Benefit Analysis Juerg Schweri 5
6 Gross cost for host companies (3-year programmes) Average gross cost per year and apprentice: CHF (23420 ) Source: Strupler & Wolter (2012) Workshop: Cost-Benefit Analysis Juerg Schweri 6
7 Gross cost for host companies (4-year programmes) Average gross cost per year and apprentice: CHF (23510 ) Source: Strupler & Wolter (2012) Workshop: Cost-Benefit Analysis Juerg Schweri 7
8 Apprentices productivity (3-year programmes) Source: Strupler & Wolter (2012) Workshop: Cost-Benefit Analysis Juerg Schweri 8
9 Apprentices productivity (4-year programmes) Source: Strupler & Wolter (2012) Workshop: Cost-Benefit Analysis Juerg Schweri 9
10 In 1'000 CHF Net benefit for training firms (3-year programmes) Gross costs Productive output Net benefit Year 1 Year 2 Year 3 Year 4 Source: Strupler & Wolter (2012) Workshop: Cost-Benefit Analysis Juerg Schweri 10
11 In 1'000 CHF Net benefit for training firms (4-year programmes) Gross Costs Productive output Net benefit Year 1 Year 2 Year 3 Year 4 Source: Strupler & Wolter (2012) Workshop: Cost-Benefit Analysis Juerg Schweri 11
12 Net benefits by occupations (3y.) Source: Strupler & Wolter (2012) Workshop: Cost-Benefit Analysis Juerg Schweri 12
13 Net benefits by occupations (4y.) Source: Strupler & Wolter (2012) Workshop: Cost-Benefit Analysis Juerg Schweri 13
14 What can we learn from CB surveys? Persons who fill in questionnaire: trainers in firms Questions in questionnaire are demanding Data quality: extensive plausibility checks High variance of net benefits between and within occupations Workshop: Cost-Benefit Analysis Juerg Schweri 14
15 3. A Tool for Cost-Benefit Analysis Developped by SFIVET to support the reform of occupational curricula with an economic analysis: simulate the effect of changes The Tool was designed to collect data and show simulations in real time Example: reform of the curriculum for opticians Workshop: Cost-Benefit Analysis Juerg Schweri 15
16 Ex.: simulation (for the occupation optician) Workshop: Cost-Benefit Analysis Juerg Schweri 16
17 Experience with CBA tool Helpful to engage in an intensive discussion process with representatives of professional associations Representatives found it easy to understand the results and ideas when guided by an expert with good knowledge of the cost-benefit model underlying the tool Discussion helps to connect cost-benefit analysis with organizational and educational issues => holistic view on training Workshop: Cost-Benefit Analysis Juerg Schweri 17
18 A CBA tool for firms? Needs to be used by somebody with good knowledge of apprenticeship training and the firm s production processes Needs careful explanation of concepts and questions Needs to be userfriendly and easy to use Needs plausibility checks Needs to support a correct interpretation additional challenges when used in countries without fullfledged apprenticeship system? Workshop: Cost-Benefit Analysis Juerg Schweri 18
19 4. Summary - Firms (and professional associations) play a major role in Swiss apprenticeship training - On average, firms derive net benefits from training - But large variation in costs and benefits - CBA tool on occupation level: successful when combined with coaching - CBA tool for training firms: demands a lot from firms and users Workshop: Cost-Benefit Analysis Juerg Schweri 19
20 Thank you for your attention! Workshop: Cost-Benefit Analysis Juerg Schweri 20
21 References Fuhrer, Marc und Jürg Schweri (2010). Kosten und Nutzen von zweijährigen beruflichen Grundbildungen aus der Sicht der Betriebe. Schlussbericht. Zollikofen: EHB. Hoeckel, K., Field, S., & Grubb, N.W. (2009). Learning for Jobs. OECD reviews of Vocational Education and Training: Switzerland. Paris: OECD. Mühlemann, Samuel, Stefan C. Wolter, Marc Fuhrer; Adrian Wüest (2007). Lehrlingsausbildung - ökonomisch betrachtet. Rüegger Verlag, Zürich/Chur. Mühlemann, Samuel, Stefan C. Wolter (2013). Return on investment of apprenticeship systems for enterprises: Evidence from cost-benefit analyses. European Expert Network on Economics of Education, Analytical report No. 16, European Commission. Schweri, Jürg, Samuel Mühlemann, Yasmina Pescio, Belinda Walther, Stefan C. Wolter und Lukas Zürcher (2003). Kosten und Nutzen der Lehrlingsausbildung aus der Sicht Schweizer Betriebe. Chur; Zürich: Rüegger Verlag. Strupler, M. & Wolter, S. (2012). Die duale Lehre eine Erfolgsgeschichte - auch für Betriebe. Ergebnisse der dritten Kosten-Nutzen-Erhebung der Lehrlingsausbildung aus der Sicht der Betriebe, Glarus/Chur: Rüegger Verlag. Workshop: Cost-Benefit Analysis Juerg Schweri 21
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