Education, Training and Employment Dynamics Transitional Labour Markets in the European Union

Edited by

Klaus Schomann Senior Research Fellow, Social Science Research Center Berlin (WZB), Germany and

Philip J. O'Connell Senior Research Officer, Economic and Social Research Institute, Dublin, Ireland

LABOUR MARKETS AND EMPLOYMENT POLICY

Edward Elgar Cheltenham, UK • Northampton, MA, USA

Contents List of List of tables Foreword Acknowledgments Notes on the contributors

figures

1

Introduction Klaus Schomann and Philip J. O'Connell

2

The theory of labour market transitions applied to the transitional labour market of education and training Klaus Schomann

PART I

3

4

5

6

1

1

8

EDUCATION SYSTEMS AND FIRST ENTRY INTO THE LABOUR MARKET

Choosing between education, training and labour market entry Cecilia Albert, Maria A. Davia, Virginia Hernanz and Luis Toharia Segmentation in the labour market: an analysis of recruitment Florence Audier

PART II

vii viii xiii xvi xvii

41

71

EVALUATION OF TRAINING TRANSITIONS AND TRAINING POLICIES

Active labour market policies, market orientation and gender: findings for young people in Ireland Philip J. O'Connell and Frances McGinnity

101

Training for the unemployed in the Netherlands: what do we know after more than 50 evaluation studies? Jaap de Koning

119

A long-term perspective on the effects of training in Germany Klaus Schomann and Rolf Becker

153

8

Training transitions in the EU: different policies but similar effects? Klaus Schomann

PART III 9

186

THE FIRM'S RATIONALE FOR TRAINING

Training practices and management of older workers: a typology from the French case Annie Jolivet

223

10

Exclusion of older workers, productivity and training Arie Gelderblom and Jaap de Koning

243

11

Training and the transition from work into unemployment Arie Gelderblom, Pieter van Winden, Ruurd Kunnen, William Praat and Marian de Voogd-Hamelink

260

12

Does enterprise-sponsored training aggravate or alleviate existing inequalities? Evidence from Ireland Philip J. O'Connell

285

PART IV ACTORS IN THE FIELD OF TRAINING 13

14

15

Index

Firms' further training practices and social exclusion: can industrial relations systems provide greater equality? Theoretical and empirical evidence from Germany and France Olivier Giraud

303

Assessing the impact of experimental EU training policies in France, Germany and Ireland Sophie Rouault

331

From the market for qualifications to the transitional labour market of learning and working: summary and conclusion Klaus Schomann and Philip J. O'Connell

356

377

Figures 3.1 3.2 3.3

Main educational decisions Definition of demand for vocational training Demanders of education vis-a-vis the mother's education attainment 3.4 Demanders of education vis-a-vis the mother's labour force status 4.1 Comparison of previous situations of men and women recruited in 1995 4.2 Proportion of beginners in each educational level (recruitment 1995) 4.3 The recruitment of school leavers, by section, 1995 5.1 A typology of active labour market programmes 8.1 Adult participation in training, 1995-6 8.2 Training of adults in employment, by sex, 1995-6 8.3 Training of adults in employment, by age, EU15, 1995-6 10.1 Age-productivity and age-wage curve according to human capital theory 10.2 Age-productivity and age-wage curve according to the efficiency-wage theory and contract theory 10.3 The effect of an increase in training

44 45 56 56 77 82 86 103 195 196 198 247 249 255

Tables 2.1 3.1 3.2

Combinations of individual and group-level social exclusion Definition of demand for secondary and tertiary education Activity and unemployment rates for different age groups and educational attainments 3.3 Young people, by relationship to head of household 3.4 Household income distribution, by demand of education variable 3.5 Gender differences in the demand for education 3.6 Demanders for various levels of education, by father's educational attainment 3.7 Binomial logit models: estimations of the probability of demanding each type of education ЗА. 1 Descriptives of the main variables used in the analysis 4.1 Proportion of employees who started in their current job (as at spring 1995) after 1 January 1994 4.2 The previous situation of new recruits, 1995 4.3 The educational level of persons recruited in 1995 (comparison between those who were either at school or unemployed in the previous year and the total population recruited) 4.4 Distribution of jobs, by gender 4.5 The most important sectors for young labour market entrants, by individual educational level, 1995 4.6 Employment status of the various categories of recruits, by previous situation, 1995 4.7 Share of recruits looking for other jobs, 1995 5.1 Logistic regression of the log-odds of obtaining a job, 18 months post-programme 5.2 Measures of programme effectiveness: predicted probabilities of employment, 18 months post-programme 5.3 Tobit estimations of post-programme employment duration 5.4 Tobit estimations of post-programme earnings from employment

15 45 49 51 52 54 55 61 69 75 76

81 87 91 93 94 107 108 111 113

5.5 6.1 6.2 6.3 6.4

6.5 6.6 6.7 6.8 6.9 6.10 6.11 7.1

7.2 7.3 7.4

7A. 1

7A.2 8.1 8.2 8.3 8.4 8.5 8A.1 9.1

Programme participants and non-participants, by gender Criteria for evaluating training policy Dutch instruments for training the unemployed Number of participants in the various training schemes for the unemployed, 1985-94 Qualitative impression of the composition of the participant groups of the various instruments, compared with their share in unemployment Results for the completion percentage: mean, standard deviation and number of cases Equation for the completion rate Results for the placement percentage: mean, standard deviation and number of cases Equation for the placement rate Overview of Dutch studies based on the non-experimental control group approach Summary of results for all training instruments for the unemployed taken together, 1985-94 Relative performance of the various training instruments Estimates of models of determinants of ratios of starting wage rate in destination job to final wage in origin job in West Germany Estimates of stochastic differential equation model of wage rate growth within jobs in West Germany Estimates of determinants of transition into unemployment in East Germany, 1989-93 Estimates of effects of further education on re-employment of unemployed men and women in East Germany, 1989-93 Partial-likelihood estimates of effects of independent variables on the likelihood of participation in further training in West Germany Estimates of participation in further training in East Germany, 1989-93 Contractual and statutory rights to paid time off for training in selected European countries Training of adults by level of education Participation in training: results from the logistic regression Transitions from employment to unemployment Transitions from unemployment to employment Eurobarometer data set analysis Access rate to training in 1991, by age group and firm size

114 126 130 134

135 136 138 139 140 141 146 147

164 167 170

173

182 183 188 199 201 208 211 218 224

9.2

Percentage distribution of all establishments in a given sector, by cluster 9.3 Percentage distribution of establishments, by size and cluster 9A. 1 Distribution of establishments, by size 9A.2 Distribution of establishments, by sector of economic activity 10.1 Activity rates, by age group, in the Netherlands 10.2 Employment-population ratios in older age groups in a number of EU member states 10.3 Proportion of civil servants by age group who perceive difficulties in several aspects of their work 10.4 Productivity and age 10.5 A selection of explanatory у variables in the productivity and wage equations 10.6 Wages and age 10.7 A selection of explanatory variables in the wage equation 11.1 Results of TOBIT analysis of the number of job-related courses between 1994 and 1996 11.2 The risk of becoming unemployed between 1994 and 1996 11.3 Influence of job-related courses on the risk of becoming unemployed between 1994 and 1996, in a simultaneous model 11.4 Influence of job-related courses in the past on the risk of becoming unemployed between 1994 and 1996 11.5 Presence of training policy and intensity of training in firms 11.6 Explanation of the forced outflow of workers 12.1 Participation by employed adults aged 25-64 in continuing education and training, by educational attainment, 1994-5 12.2 Participation by employed adults aged 25-64 in continuing education and training, by firm size, 1994-5 12.3 Descriptive statistics on main variables used in the analysis of the determinants of training 12.4 Establishment-level determinants of training 12.5 Descriptive statistics on main variables used in the analysis of the effects of training 12.6 OLS models of employment change, 1993-5 12.7 OLS models of change in labour costs per employee, 1993-5 13.1 Firms'investment in FT, 1993 13.2 Diversity of firms'further training practices 13.3 Participation in courses per 100 employees of all enterprises 13.4 Most relevant inequalities in access to firm-level further training

236 237 242 242 243 244 248 252 253 254 254 266 268

269 270 275 280 287 288 289 292 294 296 297 310 310 311 312

13.5 Further training practices in laboratory chemicals firms 13.6 Further training practices in telecommunications carriers 13.7 Further training practices in the railway rolling stock industry 14.1 ESF (and ERDF) funding under the Human Resources Community Initiatives, 1989-99

319 322 324 342