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Social Transformation and the Transition from Vocational Education to Work

Author

Listed:
  • 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.

Suggested Citation

  • Clemens Noelke & Daniel Horn, 2011. "Social Transformation and the Transition from Vocational Education to Work," Budapest Working Papers on the Labour Market 1105, Institute of Economics, Centre for Economic and Regional Studies.
  • Handle: RePEc:has:bworkp:1105
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    References listed on IDEAS

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    Cited by:

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    2. Rapacki, Ryszard & Gardawski, Juliusz & Czerniak, Adam & Horbaczewska, Bożena & Karbowski, Adam & Maszczyk, Piotr & Próchniak, Mariusz, 2018. "Wyłaniające się odmiany kapitalizmu w Europie Środkowo-Wschodniej: przegląd badań [Emerging varieties of capitalism in Central and Eastern Europe: a review]," MPRA Paper 90363, University Library of Munich, Germany, revised 2018.
    3. Sofie Cabus & Eszter Nagy, 2017. "Performance of Hungarian firms: are apprentices an asset or a liability? Evidence from a unique matched employer-employee dataset," Budapest Working Papers on the Labour Market 1706, Institute of Economics, Centre for Economic and Regional Studies.
    4. Karbowski, Adam, 2017. "Institutional underpinnings of the development of knowledge sub-systems in Central and Eastern Europe," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 30-46.
    5. Eichhorst, Werner & Rodríguez-Planas, Núria & Schmidl, Ricarda & Zimmermann, Klaus F., 2012. "A Roadmap to Vocational Education and Training Systems Around the World," IZA Discussion Papers 7110, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    school to work transition; VET; on-the-job training;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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