Session Name: Skills Development Training and Internship for Wage Employment Case Studies: Korea, Nepal, Dominican Republic

Transcription

1 Session Name: Skills Development Training and Internship for Wage Employment Case Studies: Korea, Nepal, Dominican Republic Chair: Maria Laura Sanchez Puerta, World Bank

2 Importance of skills development : The accumulation of human capital through the acquisition of knowledge and skills is recognized as central for economic development. More educated workers not only have better employment opportunities, earn more and have more stable and rewarding jobs, but they are also more adaptable and mobile. Workers who acquire more skills make other workers and capital more productive, and within the firm, they facilitate the adaptation, adoption, and ultimately invention of new technologies. This is crucial to enable economic diversification, productivity growth, and ultimately raise the standards of living of the population. 2

3 Issue in Developing Countries : In the developing world, however, the majority of the labor force has very low levels of education. Several groups of workers are challenged with finding and keeping jobs or are employed in low-productivity or low-quality jobs. Many find themselves outside the systems of formal education and technical and vocational education and training (TVET) and do not have access to on-the-job training. Some may not fulfill the academic requirements to enter or continue with formal education, while others may be working in informal sector jobs. Yet others may be unemployed or inactive and in critical need of upgrading their skills and improving their employability. 3

4 Possible Solutions: To assist these population groups, several countries have invested in a strategy of training-related active labor market programs (ALMPs) to reduce the risk of unemployment and increase workers employability and earnings. These programs generally consist of classroom training complemented by subsidies, assistance to find internships or jobs, and counseling for trainees. They can target a diverse set of skilled and unskilled workers and may take many forms. This heterogeneity reflects, in part, the different needs of these groups of workers, as well as the particular labor market challenges that each country faces. 4

5 Case Studies today: Korea Technical Vocational Education and Training System Dr. Joon Chul Eom, Professor at Korea Polytechnics Dominican Republic Juventud y Empleo Program Jose Luis Polanco, Employment Director, Ministry of Labor Nepal Adolescent Girls Employment Initiative Siroco Messerli, Team Leader Employment Fund Secretariat (HELVETAS Swiss Intercooperation) 5

6 Lessons Learned: Training-related ALMPs are the most commonly used strategy worldwide to reduce the risk of unemployment and increase the employability and earnings capacity of workers who are unskilled, transitioning from school to work, or simply transitioning through a period of unemployment. The case of Korea s Plan for Lifelong Skills Development is one of the most renowned examples of a successful education and training system that not only includes formal employees but also the informal and unemployed. Juventud y Empleo in Dominican Republic and Adolescent Girls Employment Initiative in Nepal are examples of comprehensive training programs that offer a package of services for low-skilled youth including counseling, training, job-search assistance, and workplace internships. A core feature of such a training system is that it relies on market signals: qualified private firms, nongovernmental organizations (NGOs), and public institutions provide training and other services on a competitive basis. In the most successful cases, providers are required to line up internships and identify the types of skills that are needed to be eligible for funds. These programs have proven to improve employment outcomes and other indicators such as empowerment, outlook in life, etc 6