Apprenticeships for Indiana Dr Katie Caves Swiss Economic

Apprenticeships for Indiana Dr. Katie Caves, Swiss Economic Institute, ETH Zurich Indiana Webinar 08. 09. 2018 | |

Americans at CEMETS Attended 2017 Participation planned for 2018 Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 2

Agenda 1. Swiss VPET – Selected Outcomes 2. Why VPET Works in Switzerland 3. Making VPET Work Internationally 4. Knowledge Transfer – CEMETS Reform Lab Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 3

The Swiss Education System – Permeability entry age Average 32/35/25 20 19 16 Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 4

Apprenticeships in Switzerland § 60 -70% of young people start an apprenticeship in 10 th grade § Apprentices spend 3 -4 days at work and 1 -2 days in school every week § Apprenticeships end with a federal diploma that can lead to work, professional education, or academic tertiary education § Swiss apprentice graduates earn as much as their academic peers, controlling for years of education. Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 5

Choice, not tracking Apprentices have social status The area above the line is the top PISA quartile. Many of Switzerland’s best students choose an apprenticeship. 6 Source: Bolli, Rageth, and Renold, 2018 Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | |

What is the purpose of VET? § Preparing young people for the labor market by organizing a meaningful and effective educational process (curriculum, program delivery, feedback & outcome measurement) § Offering progression routes within the whole education system (permeability no dead ends) …. . some outcome effects …. . Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 7

KOF Youth Labor Market Index – 2016 Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | 31. 05. 2018 | 8

KOFJugendarbeitsmarkt-Index: YLMI – Development Over Time über die Zeit KOF Entwicklung (Source: Renold, Ursula, Bolli, Thomas, Egg, Maria Esther, Pusterla, Filippo: On the Multiple Dimensions of Youth Labour Markets, KOF Studies, 51, Zurich, 2014) Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | 31. 05. 2018 | 9

Agenda 1. Swiss VPET – Selected Outcomes 2. Why VPET Works in Switzerland 3. Making VPET Work Internationally 4. Knowledge Transfer – CEMETS Reform Lab Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | 21. 03. 2017 | 10

Dual VET: Connecting Theory and Practice Theory Practice Vocational School Host Company 1 -2 Days per Week 3 -4 Days per Week Federal VET Certificate (2 years) or Apprenticeship: Federal VET Diploma (3 or 4 years) Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | 21. 03. 2017 | 11

Cost-Benefit for Training Companies A Simple Model Source: Strupler & Wolter, 2012 Benefits Costs Saved hiring costs Machinery, tools, etc. Trainer salaries Unskilled work Apprentice salary Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | 02. 2018 | 12

Detailed cost-benefit model Marginal product Training costs Marginal product of participant od Peri n r u t e R Posttraining wage Training costs Unskilled wage Inve iod per t n e stm Before program Source: Own depiction based on Lerman (2014) Program duration Time After program| Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich |

Swiss training companies pay most of the costs for apprenticeship and earn returns doing so Public-Private division of training costs Firms profit during training from apprentices’ productivity | | 14

Swiss System - Simplified Academic/Theoretical Advanced Professional Education & Training II Tertiary Professional Education & Training University of Applied Sciences University Secondary Vocational/Practical Apprenticeship Vocational Baccalaureate High School Graduate School Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | |

Vocational/Practical Academic/Theoretical Advanced 1978 Graduate School Tertiary Swiss System – Simplified Change over Time Professional Education & Training 1978 1996 University Secondary 2005 Apprenticeship 1996 High School Case Management & Bridge Courses: 2006 & 2004 Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | |

Successful reform: Nearly 10% graduation rate growth over 10 years Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | |

Agenda 1. Swiss VPET – Selected Outcomes 2. Why VPET Works in Switzerland 3. Making VPET Work Internationally 4. Knowledge Transfer – CEMETS Reform Lab Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | 21. 03. 2017 | 18

Education-Employment Linkage: Power Equilibrium Maximal Linkage Educators Power-Sharing Employers Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 19

Linkage in action: School-based VET does not help youth labor markets, but dual VET does Negative correlation between school-based VET and youth labor market outcomes Switzerland Percentage of school-based VET Positive correlation between dual (school/work) VET and youth labor market outcomes Percentage of dual (school/work) VET Source: OECD (2015) Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | |

Colorado High School CTE has Low Linkage because energy isn’t going to important things Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | |

Soft skills are in high and increasing demand Job Market Monitor Switzerland 1950 -2014 100% Not easy to teach in school 90% 80% 60% 50% 40% 30% 20% 10% 0% 19 50 19 52 19 54 19 56 19 58 19 60 19 62 19 64 19 66 19 68 19 70 19 72 19 74 19 76 19 78 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 20 12 20 14 Percentage of job offers 70% Poly. (compulsory education) Compulsory Education Poly. (higher education (tertiary A or B)) Higher Education Poly. (Soft Skills) Soft Skills Poly. (apprenticeship TVET) Apprenticeship (TVET) Poly. (experience) Experience Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | Source: Stellenmarkt Monitoring, Universität Zürich | 22

KOF Willingness To Train Study in Colorado American companies say key skills best learned at work Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | |

Agenda 1. Swiss VPET – Selected Outcomes 2. Why VPET Works in Switzerland 3. When VPET Works Anywhere 4. Knowledge Transfer – CEMETS Reform Lab Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 24

Idea for the USA: Apprenticeships in high school § Younger apprentices help companies earn back their training investments § Education-related apprenticeships are more valuable for young people because they earn formal diplomas § Starting in high school creates clear and efficient pathways for motivated young people § Creating quality career-starting training helps resolve dropout, false starts, and college debt Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 25

How we can help: The CEMETS Reform Lab If you want to have a deeper understanding of what matters in reform processes and how to apply that knowledge to your own country, please join us at the next CEMETS Summer Institute in 2017 Dr. Katie Caves, CEMETS | 21. 03. 2017 | 26

CEMETS Reform Lab Summer Institute | Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich Dr. Katie Caves, CEMETS | 27

Final Thought: Key Strengths of Swiss VPET § Strongly employer- and market-driven, learning on best-available technology § Effective tripartite partnership between confederation, cantons and professional organizations. § National sector organizations set “standards of excellence” in vocational and professional education pathways § Well-balanced mix between academic and professional skills § Very strong tertiary PET system (non-university degrees) § Permeability from one pathway to another throughout the system (important for social cohesion function) – no dead-end education § All professionals (instructors etc. ) in VPET have additional training (Swiss Federal Institute for Vocational Education and Training, SFIVET) § Quality control is ensured and national assessment procedures are in place. § Career guidance and counselling is systematic and professional § Policy is evidence-based through specific research programs Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 28

Thank you for your attention caves@kof. ehz. ch Website: www. cemets. ethz. ch 29

Backup Slides 1 – Cost-Benefit Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 30

Average cost and benefit per apprentice for training firms in Switzerland (2009) Gross costs Productive contribution Net benefit ROI Source: Strupler & Wolter, 2012 Per apprentice and year (in Euro) 3 y 4 y 72’ 012. 5 79’ 273. 3 96’ 391. 7 103’ 380. 8 7’ 260 10. 1% 6’ 989. 2 7. 25% Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 31

Swiss-Style Apprenticeships in the USA “Pilatus has decided to implement apprenticeship training in our U. S. facility for one simple reason. As has been proven in Switzerland, an apprenticeship program is the best way to provide the technician with comprehensive technical and theoretical training in order to assure the high standard of Pilatus workmanship. ” Markus Bucher, CEO, Pilatus Aircraft Ltd. Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 32

Backup Slides 3 – VPET Governance Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 33

4. Good Governance has impact on CVC and outcomes VPET multilevel governance Professional organizations Government Cantons (central) (Trade Unions) Companies SFIVET Schools, providers Public-private Partnership defined by law Curriculum Design Phase Curriculum Feedback Phase Curriculum Application Phase Outcomes Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 34

VPET-Relevant Institutional Actors: 600 Professional Organizations & Unions Level National Umbrella Organization National Professional Organizations Confederation of Swiss Employer Associations Swiss Trade Association Schweizerisches Arbeitgeberverband Gewerbeverband Professional Organizations Unions Swiss Federation of Trade Unions Swiss Associations of Commercial Employees Role in VPET Governance Members of Federal Commissions and Federal expert groups on policy topics Travail-Suisse Trade Unions (involvement uncommon, only in the presence of existing collective labor agreements) Responsible for occupational skills profiles, framework curricula, training materials, etc. Gesamt-arbeitsvertrag Regional Chambers of Trade Associations Regional sections of trade unions (again infrequent) Promoting apprenticeship, providing experts for exams Gewerbeverbände Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 35

Backup Slides 4 – Detailed EELI Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 36

What is education-employment linkage? § Education system Employment System Education System Linkage Hypothesis Labor Market Outcomes (Source: Renold et al, 2015, 2016) § Program: Curriculum § Code: Passing/failing: career § Employment system § Program: Labor market § Code: Payment/Non-Payment: Wages § Generally, linkage is in all the processes where actors from the education and employment systems interact in VET. § It should help improve graduates’ labor market outcomes. Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 37

Results for Switzerland Dr. Katie Caves, KOF Swiss Economic Institute, ETH Zurich | | 38