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Social Transformation and the Transition from Vocational Education to Work

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  • Clemens Noelke

    ()
    (Department of Sociology, Harvard University)

  • Daniel Horn

    ()
    (Institute of Economics of the Hungarian Academy of Sciences)

Abstract

Social research has long pointed to the apparent effectiveness of vocational education and training (VET) at the secondary level combining school-based vocational education with employer-provided training (so called "dual systems") in preparing non-college bound youth for the labor market. This study uses the Hungarian transformation process to better understand what makes dual system VET sustainable and effective. The two key questions we address are: Can employer involvement in dual system VET be sustained in the context of liberal labor market reforms? Is employer involvement required for the effectiveness of VET? Hungary had inherited an extensive dual system VET sector, but the liberal reform approach in the course of transformation has created a hostile environment for voluntary employer provision of training places for VET students. The decline in employer-provided training places has, however, been compensated by increasing training provision inside vocational schools. Results from differences-in-differences and triple-differences analyses show that the substitution of employer- with school-provided training did not affect the quality of VET graduates' jobs. However, the shift in training provision between 1994 and 2000 alone has raised young male VET graduates unemployment rate by 10 percentage points in the first year after graduation.

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Bibliographic Info

Paper provided by Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences in its series Budapest Working Papers on the Labour Market with number 1105.

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Date of creation: May 2011
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Handle: RePEc:has:bworkp:1105

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Keywords: school to work transition; VET; on-the-job training;

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  1. Meer, Jonathan, 2007. "Evidence on the returns to secondary vocational education," Economics of Education Review, Elsevier, vol. 26(5), pages 559-573, October.
  2. Johnson, William R, 1978. "A Theory of Job Shopping," The Quarterly Journal of Economics, MIT Press, vol. 92(2), pages 261-78, May.
  3. Micahael Tomz & Jason Wittenberg & Gary King, . "Clarify: Software for Interpreting and Presenting Statistical Results," Journal of Statistical Software, American Statistical Association, vol. 8(i01).
  4. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
  5. Wolter, Stefan C. & Ryan, Paul, 2011. "Apprenticeship," Handbook of the Economics of Education, Elsevier.
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Cited by:
  1. Biavaschi, Costanza & Eichhorst, Werner & Giulietti, Corrado & Kendzia, Michael J. & Muravyev, Alexander & Pieters, Janneke & Rodríguez-Planas, Núria & Schmidl, Ricarda & Zimmermann, Klaus F., 2012. "Youth Unemployment and Vocational Training," IZA Discussion Papers 6890, Institute for the Study of Labor (IZA).

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