Is occupational mobility in Germany hampered by the dual vocational system?

Similar documents
Tobias Hagen. 1. Introduction

Which Apprenticeship Training Pays-Off? Determinants of Successful Apprenticeship Training

ISCO-88 International Standard Classification of Occupations Preface

Skills and jobs mismatch. ILO findings from global research

Complex-Skill Biased Technical Change and Labor Market Polarization

Skills for future Europe: New evidence from new forecast

Measuring the Specificity of Human Capital: a Skill-based Approach

VOL. 2, NO. 6, September 2013 ISSN International Journal of Economics, Finance and Management All rights reserved.

Does workplace training mitigate inequalities in earnings?

A Note on Risk Aversion and Labour Market Outcomes: Further Evidence from German Survey Data


Literacy, numeracy and problem solving in technology rich environments: a snapshot of low proficiency in the Irish labour market

Green Jobs and Green Skills in Europe Moving towards a statistical definition of green jobs ILO Geneva November 2012

Appendix (Additional Materials for Electronic Media of the Journal) I. Variable Definition, Means and Standard Deviations

National Employment Returns (NER) 2016

Inequalities in access to job-related learning among workers in Italy: evidence from Adult Education Survey (AES)

2018 skills forecast Luxembourg

The Micro and Macro of Job Polarization

This note, for discussion, is written in response to the Apprenticeship Review.

What can a CIE tell us about the origins of negative treatment effects of a training programme

The mapping of NES and EHECS elements and categories (Version 2.0)

TRENDS IN INTERNATIONAL MATHEMATICS AND SCIENCE STUDY. Early Learning Survey. <Grade 4> <TIMSS National Research Center Name> <Address>

Plan of the presentation

Institute of Cast Metals Engineers

2018 skills forecast Malta

Bottleneck Vacancies in Romania

Linking survey data with administrative employment data: The case of the IAB-ALWA survey

Wage gaps in Europe. Jan Drahokoupil European Trade Union Institute

Education, training and skills: Forecasting skills supply and demand by Peter Szovics Cedefop

Working from Home: Heterogenous Effects on Hours Worked and Wages

Institutional effects of apprenticeship training on employment success in Germany

Codebook for the Cross-National Equivalent File

STRENGTHENING SOCIAL PROTECTION

Appendix I Structure of the Mexican Classification of Occupations - INEGI

APPLICATION FOR TRAVELLING EXPENSES REGARDING A JOB INTERVIEW

2011 Population and Housing Census. Statistical data on the hours usually worked by employed persons

How German labor courts decide: an econometric case study

Employment projection models, job quality and education

FORECASTS OF EMPLOYMENT NEEDS IN THE CYPRUS ECONOMY

APPRENTICESHIP. Apprentice Employer Training Program Sponsor Warren County Career Center Your Local Educational Agency. Page 1

Work-Related Ability as Source of Information Advantages of Training Employers

Coventry College Strategy Day ---

Skill needs in Europe

WAGES INEQUALITIES BETWEEN MEN AND WOMEN: EUROSTAT SES METADATA ANALYSIS APPLYING ECONOMETRIC MODELS 1

Education and Labour Productivity in Papua New Guinea's Tuna Processing Industry. H.F. Campbell School of Economics University of Queensland.

Education and training as a gateway to the labour market: Making inclusion real. Vocational education and training and social inclusion

Building together the workforce of today and tomorrow

The Determinants Of Training : Evidence From The 1998 Workplace and Employee Relations Survey

Labor Representation in Governance as an Insurance Mechanism E. Han Kim, Ernst Maug and Christoph Schneider Presentation at the 1 st CSEF Conference

LABOUR ECONOMICS RESEARCH GROUP (LERG) DISCUSSION PAPER SERIES SCHOOL OF ECONOMICS

OVERQUALIFICATION AND CAREER. Simonetta Longhi Malcolm Brynin ISER University of Essex

THE CHANGING DEMAND FOR SKILLS IN THE UK

Keywords: Education System, Vocational Education, Youth Labour Market, Unemployment

Ownership Structure and HR Management

A number of studies have documented lower levels of schooling or formal education in

Skills and qualifications

R&D and performance in modern economies: survey R&D versus broader R&D measures Prof. Hannu Piekkola University of Vaasa

Problem statement: Jordanian Women: Well Educated, Healthy, But Economically Excluded

The Impacts of Digital Technology on Employment

Subject Index. man, 87-89; Japanese transplants in United States, ; union role in us., 80

The Europe 2020 Strategy and Skill Mismatch

Skills, Competitiveness and Productivity

Examining the Link Between Health Measures, Management Practices and Establishment Performance

The gap between the supply and demand sides in the engineering and electrical industrial sector. Executive Summary

Michele Belloni, Agar Brugiavini, Elena Meschi, and Kea Tijdens. Measurement error in occupational coding: an analysis on SHARE data

The transition from education to working life

Value of vocational qualifications in the Construction and Built Environment Sector Final Report

The State of Occupational Safety and Health in the European Union (including the Risk sector project)

Do Firms Benefit from Apprenticeship Investments? Why Firms Do and Do Not Invest

MARRIAGE, CHILD BEARING AND THE PROMOTION OF WOMEN TO MANAGERIAL POSITIONS i

Male-Female Pay Differences, Jordanian Case

Firm-sponsored training in regulated labour markets: evidence from Spain

The Returns to Pencil Use Revisited

The returns to learning later in life: a summary of CEE work

OVERTIME WORK AND OVERTIME COMPENSATION IN GERMANY

ISCO-88 update and tourism occupations

The E ciency of Human Capital Allocations in Developing Countries

Report on the development of the. competence framework. for chemical engineering. SBG Dresden

Effects of Organizational Change on Worker Well-being and the Moderating Role of Trade Unions

For more information on the 292 occupational grouping used in COPS, please visit: cops/l.3bd.2t.

Experimentation for better policy-making. CES Breakfast session, January 18, 2011

Study of Demand-Led Labour Market Strategies to Improve Employment Outcomes for British Columbia Youth. Tom Zizys June 2014

Training motivation of low-skilled workers

Outline. Human capital theory by C. Echevarria. Investment decision. Outline. Investment decision. Investment decision

How to effectively integrate the Organising Framework for Occupations in industry (OFO)

Private Returns to Education in Greece: A Review of the Empirical Literature

THE DYNAMICS OF SKILL MISMATCHES IN THE DUTCH LABOR MARKET

(SAMPLE) JOB DESCRIPTIONS

CPB Discussion Paper 246. Town and city jobs: your job is different in another location. Suzanne Kok

YOUTH EMPLOYMENT IN MALAYSIA; SKILLS DEVELOPMENT AND

Anticipation of qualification needs and skills for green jobs. Peter Szovics Cedefop

Canadian Employee Relocation Council

Employer-led Training in the U.S. Should, Can Public Policies Encourage More?

1. E-TVET Strategy. Introduction

COMMISSION OF THE EUROPEAN COMMUNITIES COMMISSION STAFF WORKING DOCUMENT. Accompanying the

COMMISSION OF THE EUROPEAN COMMUNITIES COMMISSION STAFF WORKING DOCUMENT. Accompanying the

European Skills for the 21st Century

Doing well in reforming the labour market? Recent trends in job stability and wages in Germany

Bottleneck Vacancies in Latvia

UK Gender Pay Report 2017

Transcription:

Is occupational mobility in Germany hampered by the dual vocational system? Results of a British-German comparison 3 rd SEEK Conference - Engines for More and Better Jobs in Europe April 25-26, 2013 ZEW Mannheim Thomas Rhein, Parvati Trübswetter (IAB), Natascha Nisic (University of Hamburg)

Motivation Occupational mobility in Germany considerably lower than in Anglo- Saxon countries (e.g. Longhi/Brynin 2010) Occupational mobility is considered important for: individual labour market success and career opportunities adjustment of occupational structure to technological change and/or shifts in the demand for goods and services One main suspect for low mobility in Germany: dual vocational training (apprenticeship system), blamed for sorting labour market entrants (too) early into rigidly defined occupations (e.g. Heckman 1996, Hanushek et al. 2011, Schneider / Zimmermann 2010) Research question: Does the dual system really impede occupational mobility in Germany (and if so, to what extent?) 2

Identification of the influence of dual training 1. Britain (with no dual training system) used as a benchmark 2. We exploit the fact that not all jobs and occupations in Germany require dual training. Other categories: academic education, and no formal education 3. Compare mobility rates for these three categories of jobs in Germany 4. Transposition of the occupational categories to the British data (counterfactual), repetition of step 3. for Britain and comparison of results (difference-in-difference analysis). 3

Determinants of occupational mobility Human capital theory and job search and matching theory as framework for analyzing occupational mobility Bad worker-occupation matches (due to imperfect information or other market frictions or changing task content) and occupationspecific demand shocks as drivers of mobility (Moscarini / Vella 2008) Accumulation of occupational-specific human capital as barrier to mobility Mobility declines with age and occupational tenure Mobility is largely pro-cyclical 4

Effects of institutional framework (1) (Vocational) educational system Focus on occupation-specific vs. general skills Degree of standardization of training and importance of certificates (entry barriers to particular occupations) Germany: high level of vocational specificity (currently more than 340 Ausbildungsberufe (=apprenticeship occupations) and standardization; workplace-based part of dual training thought to ensure good occupational fit Britain: vocational training largely state-provided (in colleges and vocational schools), focus on general skills. Weak link between educational and employment system 5

Effects of institutional framework (2) High employment protection should impede mobility, since in most cases, an occupational change involves a firm change Higher income protection in case of unemployment should also hamper mobility 6

Main hypotheses In occupations requiring dual training, relative mobility should be lower in Germany than in the same occupations in Britain. Overall level of mobility should be lower in Germany than in Britain. In Britain, work experience and age should matter more for mobility than in Germany, especially in apprenticeship occupations 7

Data GSOEP and BHPS Pooled samples over the years 1993 to 2009 Workers aged 26 to 64 in either dependent employment or self-employment Occupational change with no (or only short) unemployment spells in between (change in ISCO 3-digit code), controlling for spurious mobility In both datasets, occupations are double-coded using national classification systems and the ISCO-88 8

Major Groups of ISCO-88 1 Legislators, Senior Officials, and Managers 2 Professionals 3 Technicians and Associate Professionals 4 Clerks 5 Service Workers and Shop and Market Sales Workers 6 Skilled Agricultural and Fishery Workers 7 Craft and Related Trades Workers 8 Plant and Machine Operators and Assemblers 9 Elementary Occupations (0 Armed Forces) 9

ISCO-88: Two and Three Digit Level (example 1) 2 Professionals 21 Physical, Mathematical and Engineering Professionals 211 Physicists, Chemists and Related Professionals 212 Mathematicians, Statisticians and Related Professionals 213 Computing Professionals 214 Architects, Engineers and Related Professionals 22 Life Science and Health Professionals 23 Teaching Professionals 24 Other Professionals 10

ISCO-88: Two and Three Digit Level (example 2) 7 Craft and Related Trades Workers 71 Extraction and Building Trades Workers 72 Metal, Machinery and Related Trades Workers 73 Precision, handicraft, craft printing and related trades workers 731 Precisions Workers in Metal and Related Materials 732 Potters, Glass-makers and Related Trades Workers 733 Handicraft workers in wood, textile, leather and related materials 734 Craft Printing and Related Trades Workers 74 Other Craft and Related Trades Workers 11

Definition of apprenticeship occupations (dual system occupations) The definition is based on the GSOEP question that asks for the required training for the current job with the following answers: Low education Apprenticeship Higher education (dual training) No Training Vocational Training Technical School Intro. To Job On-The-Job Training Technical College University Courses A given occupation is defined as apprenticeship occupation if at least 2/3 of the respondents indicate that they need dual training for their job. 12

Descriptive statistics of samples drawn from BHPS + GSOEP Germany U.K. Germany U.K. male 0.57 0.53 Higher education occ. 0.13 0.10 age 43 43 Apprenticeship occ. 0.51 0.39 married 0.65 0.69 Low education occ. 0.08 0.09 ISCED 0-2 0.12 0.18 Other occupations 0.28 0.42 ISCED 3-4 0.56 0.41 ISCED 5-6 0.31 0.41 N 110,067 79,897 Weighted mean values, BHPS waves 1993-2008, GSOEP waves1994-2009 13

Yearly mobility rates (occupational changers) Share of occupation changers Germany UK... on all working persons 3.46 9.81 out of apprenticeship occupations 3.1 9.0 into apprenticeship occupations 2.8 8.9 out of higher education occupations 2.7 7.4 into higher education occupations 2.6 7.5 out of low education occupations 3.9 11.4 into low education occupations 4.1 10.0 Occupations classified according to education required in Germany 14

Estimation: Random-effects probit regressions Probability to change occupation as dependent variable (AME for comparability) Independent variables: Dummies for: Gender, married, ISCED middle and high, years Proxy for experience using age and age squared Dummies for apprenticeship occupations and higher education occupations (low education occ. as reference category) Interactions between occupational categories and age 15

Probability to move average marginal effects (AME) Apprenticeship occupation Germany Britain AME -0.019 (0.004) -0.012 (0.007) AME perc. -54.9% -12.2% Higher education occupation Age AME -0.017 (0.002) 0.029 (0.006) AME perc. -49.1% -29.6% AME -0.001 (0.00007) -0.004 (0.00002) AME perc. -2.9% -4.1% Standard errors in parentheses. Other explanatory variables, not displayed here: sex, age, marital status, ISCED groups, Wald time Chi dummies squared (34) (years). 1087.56 1355.32 16

Average marginal effect of age by kind of occupation 0-0,0005 no dual occ. dual occ. -0,001-0,0015-0,002-0,0025 Germany outward U.K. outward -0,003-0,0035-0,004-0,0045 17

Prediction of occupational change Average of the predictions over all years Predictions for outward mobility in Germany and the U.K. 18

Germany and UK outward mobility: prediction Higher change rates in Britain at the beginning, particularly in dual system occupations 19

Results Workers in apprenticeship occupations are least mobile in Germany, but not in Britain dual system contributes to low mobility in Germany But, given the low mobility also in other occupational categories, only a small part of the overall low mobility can be attributed to the dual system Relevance of certificates also in higher education jobs and influence of other institutions Influence of age and work experience as expected (lower in Germany than in Britain) 20

Thank you very much for your attention www.iab.de