Determinants and effects of participation in continuing education Results of the Bavarian Graduate Panel (BAP)

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1 Determinants and effects of participation in continuing education Results of the Bavarian Graduate Panel (BAP) Judith Klink 8 th International Workshop on Higher Education Berlin, 5-7 th October 2011

2 Motivation In Germany, highly qualified employees are participating in continuing education most actively (am weiterbildungsaktivsten) More than 80 % of Bavarian graduates take part in continuing education in the first five years after graduation Continuing education has an effect on professional development Continuing education is an investment of the graduate as well as of his/her employer 2

3 Research questions Which kind of characteristics of the graduate increase the propensity to invest in continuing education after graduation? Which kind of effects have investments in continuing education on professional success? 3

4 Outline State of research Determinants of participating in continuing education Effects of participating in continuing education Theoretical Background: Human Capital Theory Data: The Bavarian Graduate Panel (BAP) Results Strategies of continuing education Taking up a leadership position Conclusion 4

5 State of research I Determinants of participation in continuing education Gender No differences between female and male graduates in participation Differences regarding employer-support Occupational situation and career history/ occupational career (Erwerbsverlauf) Industrial sector, company size, permanent employment, full time employment 5

6 State of research II Effects of participation in continuing education Income Small, positive effects Occupational mobility Decreasing downward occupational mobility Certification increases upward occupational mobility Occupational adequacy General training has a positive effect on occupational adequacy of graduates of Humanities and arts 6

7 Theoretical Background: Human Capital Theory Continuning education as investment Increasing productitiy Investment at early times in work life Graduates and employers can invest General and firm-specific human capital Direct und indirect costs 7

8 Data Bavarian Graduate Panel (BAP) Selected cohorts in a longitudinal perspective All fields of study Representative at regional level (Bavaria) and for Higher Education Institutions Topics: Labour market entry, early labour market success, evaluation of study and employment Cohort of 2004, 1 st and 2 nd survey after graduation 8

9 Strategies of continuing education I Non-participant: no continuning education since graduation Self-Made: only self-financed continuing education Double tracked: employer and self-financed continuing education Integrated: only employer supported continuing education 9

10 Strategies of continuing education II 100% 80% 60% 40% 20% 29,6% 21,4% 31,3% 17,8% 0% Integrated Double tracked Self-Made Non-participant n=

11 Results Determinants of participating in continuing education I 100% 80% 60% 40% Integrated Double tracked Self-Made Non-participant 20% 0% n=

12 Results Determinants of participating in continuing education II 100% 80% 60% Integrated Double tracked Self-Made Non-participant 40% 20% 0% Women without children Women with children Man without children Man with children n=

13 Results Determinants III Multinomial logistic regression Ref: Non-participant Self-Made Double tracked Integrated Personal characteristics Female (Ref. Male) 0,719** - - With children (Ref. without children) 0,719** 0,596*** 0,615*** Field of study (Ref. Linguistics and literary studies) Economics uni ,537* Economics appl ,500** Social work/pedagogy - 2,049* - Sociology/Politics - - 0,469* Information technology uni ,400* Information technology appl Biology/(Bio)Chemistry - - 0,482* Mathematics/Physics Engineering univ ,342** Engineering appl ,354*** Architecture univ Architecture appl. 0,242* - - Nagelkerke R 2 0,007 Chi 2 117,243 n 2077 * p<0.10, ** p<0.05, *** p<

14 Results Effects Logistic regression I Field of study (Ref. Economics) Linguistics and literature studys Psychology Social work/pedagogy Other economics Sociology/Politics Information tech./mathematics/physics (Bio)Chemistry/Biology Geography Engineering Architecture Personal characteristics (Ref. Man without children) Man with children 1.465* Women without children Women with children Social background Father academic (Ref. father no academic) Odds ratios, + p<0.1, * p<0.05, ** p<0.01, *** p<

15 Results Effects Logistic regression II Occupational characteristics Fulltime (Ref. Part-time employment) 1.894*** Duration of employment Permanent (Ref. limited employment) Company size (Ref employees) employees emplyees and more 0.420*** Public sector Study characteristics University (Ref. University of applied sciences) 1.622** Final grade Duration of study 0.917* PHD Self-efficacy 0.919*** Continuing education 1.075** Pseudo R² 0.069*** Chi² n 1484 Odds ratios, + p<0.1, * p<0.05, ** p<0.01, *** p<

16 Conclusion Different strategies of participation in continuing education Male graduates with children show personal engagement 20% of the Bavarian graduates did not take part in (formal) continuing education since graduation Effects of participation Increases the propensity to taking up a leadership position Further research Time-depending analyses (Panel Data or Event History) Causal inference 16

17 Thank you for your attention! 17

18 References Becker, G. (1975): Human Capital. A Theoretical and Empirical Analysis with Special Reference to Education. Chicago/London: University of Chicago Press. Leuze, Kathrin/Strauß, Susanne (2008): "Berufliche Spezialisierung und Weiterbildung. Determinanten des Arbeitsmarkterfolgs von GeisteswissenschaftlerInnen". In: Heike Solga/Denis Huschka/ Patricia Eilsberger/Gert G. Wagner (Hg.): Findigkeit in unsicheren Zeiten. Ergebnisse des Expertisenwettbewerbs 'Arts and Figures - GeisteswissenschaftlerInnen im Beruf'. Bd. 1. Opladen/ Farmington Hills: Budrich UniPress, S Strauß, Susanne/Leuze, Kathrin (2011): "Further Education of Higher Education Graduates - the More, the Better?". In: European Journal of Education - Research, Development and Policies. Willich, J.; Minks, K.-H.; Schaeper, H. (2002): Was fördert, was hemmt die Teilnahme an beruflicher Weiterbildung? Die Rolle von Familie, Betrieb und Beschäftigungssituation für die Weiterbildung von jungen Hochqualifizierten. HIS- Kurzinformation A4/2002. Hannover: HIS. Wolter, F.; Schiener, J. (2009): Einkommenseffekte beruflicher Weiterbildung. Empirische Analysen auf Basis des Mikrozensus-Panels. In: Kölner Zeitschrift für Soziologie und Sozialpsychologie, 61, S

19 Heterogeneity of continuing education Motivation: taking up employment, compensating for studydeficites, adaption and updating of qualifications, preparing of upward occupational mobility Topic: leadership/managerial competencies (Führung/Management), study-related subjects and topics (Fachund Sachthemen) Financing: direct and indirect costs Effects: income changes (Einkommensveränderung), oppucational mobility Labour market integration 19

20 1. B. 2. B. Jahrgang B. 2. B. 3. B. Jahrgang B. 2. B. 3. B. Jahrgang B. 2. B. Jahrgang B abgeschlossen

21 Theoretical Background: Human Capital Theory II By definition, firm-specific knowledge is useful only in the firms providing it, whereas general knowledge is useful also in other firms (Becker 1993: 393). Firm-specific: employee s dependence on the employer General: employee s attractiveness for other employers Investments in further education = strategic interaction between employer and employee Investments in general human capital are risky for employers Investments in general human capital if a long-term relationship can be expected 21

22 Figure 1: Trust Game with incomplete information (S 1 < P 1 < R 1, P 2 < R 2 < T 2, T 2* < R 2 ) 22

23 Hazard rate of employer`s investments in empolyee`s human capital by length of employment in months General human capital Firm-specific human capital months months 23

24 Table 1: Cox regression (β-coefficients), main variables First employment found by personal contacts (ref.: first employment found by other means) (1) General human capital (2) Firm-specific human capital Company size (ref.: > 250 employees) < 10 employees employees employees Fixed-term contract (ref.: permanent contract) * Observations Failures Log likelihood * p< 0.05, ** p< 0.01, *** p<

25 Table 2: Cox regression (β-coefficients), control variables (1) General hc (2) Firm-specific hc Public sector (ref.: private sector) Agriculture and industry (ref.: services) Part-time employment (ref.: full-time employment) * Gender (1=female) * Migrant (1=yes) * Field of study (ref.: linguistics and cultural studies) Economics and social sciences Science and mathematics * Engineering Observations Failures Log likelihood * p< 0.05, ** p< 0.01, *** p<