The Curious Case of Complexity in VET Systems

The Curious Case of Complexity in VET Systems Geoff Hayward University of Leeds

In the beginning there was the guild

The decline of the Guild • It is to prevent this reduction of price, and consequently of wages and profit, by restraining that free competition which would most certainly occasion it, that all corporations, and the greater part of corporation laws, have been established. (. . . ) and when any particular class of artificers or traders thought proper to act as a corporation without a charter, such adulterine guilds, as they were called, were not always disfranchised upon that account, but obliged to fine annually to the king for permission to exercise their usurped privileges. (Adam Smith, The Wealth of Nations, Book 1)

The rise of the qualification Emperor Wen of Sui (r 561 -604)

ility

Number of accredited qualifications as of 30 th September of each year. Source: Ofqual NDAQ database.

Stacking ‘em up

Secondary school expenditure on examinations. Source: DCSF Outturn data; www. dcsf. gov. uk/everychildmatters/strategy/financeandfunding/informationforlo calauthorities/section 52/dataarchive/s 52 da

Overall value of the qualifications market – Ofqual 2010 Using the latest available figures for schools (DCSF 2008− 9 − £ 280 million) and colleges (Learning and Skills Council 2006− 7 − £ 173 million) we can say for England only the total market is about £ 453 million excluding fees paid by learning providers, and employers to awarding organisations. Using the crude estimates for the fees paid for GCSE, A level and ‘other’ qualifications we come to a combined figure of £ 933 million. This estimate has the potential to be high or low and should only be taken as an illustrative figure.

Geoff this is a success story! • If qualifications are social goods in their own right then we can see this outcome as a success • But qualification for an individual is about progression: a VQ is only useful if it supports progression and produces a private rate of return on investment • For the state there has to be a social rate of return on investment in complicated qualification systems

State intervention • Perceived market failure • State intervenes to increase supply of valued good – qualified individuals – Direct payment for general education – Subsidy for training – Train to Gain, EMA – deadweight problems clear – System regulation – competence, levels, modularisation

But it’s the labour market stupid • Deregulated labour market with few licences to practice • Internal labour market rather than an occupation based labour market? • What purchase do VQs have, especially at the lower end of such a labour market? • Are VQs a means to deliver an alternative general education?

Dreadnoughts racing

Promoting labour and social mobility

Meeting employer needs

In search of an elusive quarry – employability

The unbearable lightness of ‘skill’

Hunting an elusive quarry – the search for generic skills

So what is the role of the state? • Protecting the interests of young people – Make sure they have access to qualifications that support progression – Support the acquisition of such qualifications – The Wolf report makes salutary reading – The variable quality of apprenticeship – the new Train to Gain • Adult quals, exception those failed develop basic skills, let the market work • Don’t try to certify the uncertifiable