Internships in Denmark

The preparation of this report has been co-financed by the European Union, project “Internship in Companies II”, registration number CZ.1.07/3.1.00/49.0001. Author: Oxford Research A/S 2015

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Executive summary .............................................................................................................................. 3 Analysis report........................................................................................................................... 7

I. 1)

Introduction - Internships Framework ................................................................................ 7

2)

Internships Programs/Schemes ....................................................................................... 12

3)

Internships financing .......................................................................................................... 18

4)

Internships Providers and Target Groups ....................................................................... 22

5)

Internships Effects and Results for various target groups ............................................ 25

6) Internships as a part of further education system (lifelong learning/continuing vocational training) ..................................................................................................................... 28 7)

EU Law linkage ................................................................................................................... 29

8)

Case Studies and Good Practice ..................................................................................... 30 Methodology ............................................................................................................................ 36

II.

Data collection and analysis methods ..................................................................................... 36 III.

Bibliography ......................................................................................................................... 37

Education and training policy - Reference to documents, strategies, laws etc. ................ 37 Employment policy - Reference to documents, strategies, laws etc. ................................. 38 Websites....................................................................................................................................... 38 IV.

People interviewed ............................................................................................................. 39

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Executive summary Internships in companies are an increasingly important component of labour market development. In Denmark, there are various kinds of internships working as part of both the system of education and training and as part of the public employment policies. These programmes are linked to a variety of overall policies linked to employment, education, and ongoing job training. While there are a range of extensive internship programmes, there is not one single “internship system” per se. Rather, internship opportunities are provided by a number of subsystems and initiatives linked to a variety of institutions, both public and private, as well as companies. There are a number of distinctions that need to be made. For the programs that are part of broad employment policies, the reasons for implementing them include addressing general unemployment, with special provisions for low-skilled unemployed people. Reforms to the unemployment insurance system and the recent significance to work experience have driven a rise in the requirement for un/under-employed workers to undertake internships in companies as part of their preparations for returning to the mainstream labour market. For programmes that are part of the education and training system, the reasons are to be found in the understanding that practical experience is a vital part of the learning process. For CVET/VET programmes, training institutions and intermediary organisations, both employers and employee associations, play a major role in driving the supply and demand for internships. University education has also been encouraged to integrate internships for students before they complete their studies, usually between the Bachelor’s and Master’s degree level. These internship approaches are generally targeted to students in higher education to prepare them for the labour market, encouraging them to graduate sooner and preparing them to enter a position and make an immediate impact. There have been a series of reforms over the past five years that have affected the demand for internships in companies. Major groups of labour market participants have been addressed. General active employment policies have undergone major changes including both a reform for the insured and uninsured unemployed people. This has been accompanied by a reform to the internships approaches as part of the system for vocational and educational training (VET-system), as well as for university-based entrants to the labour market. For the unemployed, both those under with employment insurance and those without insurance, the main aim is that all unemployed people will need to work for the benefits. The measure is used for unemployed people who are able to work and are either awaiting to start a new job or an education. As part of this measure, an internship of 13 weeks is integrated into the employment preparation for people without insurance. The terms of the internship are set on an individual basis. On 16 June 2014, a new employment reform was passed in Parliament that concerned the insured unemployed. The reform resulted from the view that the employment system had not being sufficiently efficient and that the unemployed were not sufficiently supported in returning to paid employment. The insurance payment period has been dropped from four years to two, with a range of progressively active instruments in place to support a return to work, with mandatory internships making up a central part of the scheme. The goals are met with several new initiatives. The most important initiatives in regards to

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internships is the adjustment to the Adult apprenticeship programme, which is a special offer for adults over 25 years of age entering into vocational education and training. The policy programme compensates businesses that take in an adult trainee and the apprentice receives a contractual wage while attending the programme. From July 2015 the measure ‘nytteindsats’ will be also used for insured unemployed people, which may include subsidized internships in companies of a max of four weeks. The Danish vocational education and training programs (VET) are alternating programs, where practical training in a company alternates with teaching at a vocational college. Internships are therefore one of the core elements and necessary in order to graduate. The objective of the VET programs is to motivate young people to complete training that can qualify them for employment and at the same time, accommodate the needs of the labour market. Many students in vocational education and training prefer teaching in practical subjects, which means that the learning process are closely linked with internships in order to engage the individual student. The VET programs consist of a school-based basic course (20-40 weeks) and a main program (3 to 3½ years). The main programme alternates between company-based training (2/3) and school-based training (1/3). The student must enter into a training agreement with a company approved by the social partners (a confederation of representatives of employers and employees) in order to accomplish the main program. The social partners have considerable influence on and thus, great responsibility for VET. Training placements are based on a contract or training agreement, between an apprentice and a company. All training companies are approved by the social partners via the relevant trade committee and thereby have to live up to certain requirements, for example a certain level of available technology and ability to offer various tasks in an occupation. For university students entering the labour market, terminal bachelor degrees (bachelor-only) programs (for specific professions) combine theoretical studies with a practically oriented approach in form of mandatory internships in workplace, and are generally orientated towards specific professions or job functions. The terminal bachelor programs normally have a duration of three to four years with a scope of 210 ECTS (European Credit Transfer and Accumulation System), including at least 6 month of mandatory internship. The requirement for mandatory internship was introduced after August 1, 2009, according to the legislation on academies of professional higher education1. By contrast, internships as part of an academic university degree are distinguished primarily from other types of internships due to the fact that they are largely voluntarily and not a requirement in order to graduate. Internships are often offered when students pursues master’s programmes, both in Denmark and abroad. Internship as part of university degree is a pre-professional learning experience that offers relevant academic work experience related to a student’s field of study or career interest. An internship integrates the student’s academic knowledge with practical experience in a business. Companies have been enthusiastic about the availability of internships. For the businesses, the internship is an opportunity to connect with students at a very early point in their careers benefiting immediately from their 1

Lov om erhvervsakademiuddannelser og professionsbacheloruddannelser, Lov nr 207 af 31/03/2008

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competencies as well as having the opportunity to recruit students for more long-term employment. Many university programmes formally recognise the value of internships and offer credit. If an internship is completed, and the students achieve ECTS credit for an internship, the student must first enter a formal agreement with the university degree program. The Boards of studies and directors of studies, which is an organ within the university comprised of faculty members, ensure the agreement and are mainly responsible for ensuring the student activities are in the best interest of both current educational goals and long term employment prospects. This includes approval of applications for credit. This is determined in the Danish Act on Universities by the Danish Ministry of Higher Education and Science.2 One of the main responsibilities the board has is the quality assurance. There must be a strong a strong learning component to the internship, as well as a clear written contract describing the internship in as much detail as possible. There is no direct link from the Danish Law to European law – meaning legislation and regulation – considering the development of the overall Danish education and training system. However, internships as part of the educational and training system are also categorized according to the national Qualifications Frameworks (NQF), which is link to the European Qualifications Framework (EQF). It should be noted that when the job training scheme as part of the Danish law on active employment was first introduced, a political discussion followed including comments that indicated the scheme being in conflict with the European competition legislation due to fact that companies can hire unemployed as cheap labor, and this may eventually cost jobs for ordinary employees and create unfair competition. Though, it was later declared - based on discussions with the European Commission - that the job training scheme is a general measure that does not constitute state aid, thus does not create discrimination towards other institutions and distort competition. An analysis committed by the European Commission in 2013 shows that the Danish vocational education and training, where internships are an obligated and core element of the education, considered as very effective in facilitating student-to-work (STW) transitions, as well as the completion rate is about 70 %. Other studies have shown that adult apprenticeship programmes that include internships demonstrated several positive effects that can be traced both in terms of employment rates and in terms of income level for apprentices going into the programme from unemployment. These effects are seen among both the skilled and the lowskilled, but the effects are greater among low skilled and uninsured persons, which may reflect the higher level of qualification obtained through the programme. Internships as part of university education have shown positive, yet informal, results. Three cases have been prepared to illustrate the processes and impacts of the internship system. Given the range of sub-programmes and target groups that are potentially involved in internships in companies, the cases have been selected to illustrate the variety of approaches used in Denmark. These case studies profile specific components of the internship system, focusing on a particular piece of the overall programmes and initiatives to support access to internships in companies. Information was taken from existing research, supplemented by interviews. The programmes highlighted include good practice examples drawn from within

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Bekendtgørelse af lov om universiteter (Universitetsloven), LBK nr 960 af 14/08/2014

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each of the target groups profiled: lower-skilled unemployed, VET/C-VET participants, and university-based interns. Overall, the lessons to be learned are focused on the positive features of the programmes and the shifts in focus that have arisen out of a need to facilitate internships in companies, as internships are an increasingly important component of labour market development.

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I. Analysis report 1) Introduction - Internships Framework

In Denmark, there are various kinds of internships working as part of both the system of education and training and as part of public employment policies. These programmes are linked to a variety of overall policies linked to employment, education, and ongoing job training. While there are a range of extensive internship programmes, there is not one single “internship system” per se. Rather, internship opportunities are provided by a number of subsystems and initiatives linked to a variety of institutions, both public and private, as well as companies. There are a number of distinctions that need to be made. For the programs that are part of the broad employment policies, the reasons for implementing them include addressing general unemployment, with special provisions for low-skilled unemployed people. The unemployment insurance system is strongly tied to these programmes. For programmes that are part of the education and training system, the reasons are to be found in the understanding that practical experience is a vital part of the learning process. These internship approaches are generally targeted to students in higher education to prepare them for the labour market. Employment insurance programmes and organisations have also undergone a period of reform, which has significant effect on the labour market in general and the internship systems in particular. Recently, general active employment policies have undergone major changes including both a reform for the insured and uninsured unemployed people. This has been accompanied by a reform to the system of vocational and educational training (VET-system). These reforms have influence on one or more of the internships programmes available in the Danish context. 1.1 Active employment policies as part of unemployment insurance In Denmark, unemployment insurance is a voluntary scheme administered by the unemployment insurance funds (A-kasser). It is not a government programme. Individuals subscribe to an insurance fund and pay into it on a quarterly or monthly basis. There is no requirement to join a fund. The Danish system thus differentiates between the situation for the unemployed who are insured and those who are uninsured, if they are part of the labour force. Unemployment insurance funds are private associations of employees or self-employed persons organised for the purpose of ensuring economic support in the event of unemployment in all occupations and industries. Unemployment insurance is, however, largely financed by the State. There are 31 government-recognised unemployment insurance funds nation-wide. One needs to be employed in order to join an insurance fund. For people just graduating they have a set numbers weeks to join. Given that the insurance funds pay out to members, the funds are under constant pressure to find ways to support their members returning to employment. Payments for periods of unemployment are not automatic, and are based on demonstrating active attempts to return to work. After a fixed period, most insurance funds take on an active role in supporting a return to work, and internships have become a very popular approach for funds to support their members. If the insured unemployed people are assigned to an internship – it will be

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a condition for continuing to receive unemployment insurance payment, which is rather common. Since 2014, two new political reforms have been agreed upon that affect the insurance system and which has had significant impact on internships in companies; the reform of the social assistance system, which went into effect on January 1st, 2014, and the new employment reform, which entered into effect on January 1st, 2015. Both reforms have changes that involve aspects of the internships programmes. 1.1.1 Reform for the uninsured unemployed people There is a significant challenge with the segment of the population that has chosen not to join the insurance system. Previously, the system of social assistance suffered a number of challenges:    

The number of people receiving social assistance was too high the system did not address the diversity of the people who were receiving social assistance (they have very different challenges and needs) the requirements were not clear many people did not get the right effort and help in order to move forward (work or education)

The most marginalized portions of the labour market also tend to be ones where membership in the insurance schemes is lowest. Of the people who were unemployed and did not join an insurance fund, more than 90 pct. did not hold a qualification, 75 pct. had elementary school as their highest level of qualification and almost half the recipients were young people under 30 years. Due to these challenges, a new reform to the social assistance system entered into force on the 1st of January 2014. This reform concerned the unemployed who are not insured. The reform has a strong focus on early intervention and on young people (under 30) with no education. The goal of this new reform is that young people obtain qualification, often with a strong internship component. All young recipients of social assistance under the age of 25 years without a qualification, without dependents and who are able to take a training course, must be instructed to take a course on the same conditions as others. For the young people not immediately suited to enter a course, efforts must focus on clarifying and making them suitable to obtain qualifications or obtain a job (Ministry of Employment). As part of this reform a new measure was introduced (‘nytteindsats’). The aim is that all unemployed people will need to work for the benefits. The measure is used for unemployed people who are able to work and are either awaiting to start a new job or an education. As part of this measure, an internship of max 13 weeks is integrated into the employment preparation. The terms of the internship are set on an individual basis. 1.1.2 New employment reform for the insured unemployed people While the insurance funds are free to set their own terms, the government has an insurance policy that sets the framework for lengths of periods that people generally receive benefits. The employment system has been heavily debated both publicly and politically for the last four

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years when a large reform in May 2010, amongst other things, reduced the insurance period from four to two years. Until that point, unemployed people could receive benefits for up to four years. On 16 June 2014, a new employment reform was passed in Parliament. The purpose of the reform was to secure flexibility in the Danish labour market and to support a low unemployment rate and high employment. The new employment reform only concerned the insured unemployed. The reform resulted from the view that the employment system is not being sufficiently efficient and that the unemployed were not sufficiently supported in returning to paid employment. Implementation of this reform began in the summer of 2014 - The reform will be fully implemented by January 1st, 2017. The goals are met with several new initiatives. The most important initiatives in regards to internships is the adjustment to the Adult apprenticeship programme, which is a special offer for adults over 25 years of age entering into vocational education and training. The policy programme compensates businesses that take in an adult trainee and the apprentice receives a contractual wage while attending the programme. From July 2015 the measure, ‘nytteindsats’ will also be used for insured unemployed people, which may include internships in companies of a max of four weeks. (For more details about programmes see section 2.3.2) 1.2 The reform of the vocational system of education and training (VET-system) Internships have been integrated into the mainstream VET system. The Danish vocational education and training programmes (I-VET) are alternating or “sandwich-type” programmes, where practical training in a company alternates with teaching at a vocational college. A vocational education emphasizes practical experience and the majority of the learning process must be conducted in a practical training company such as a larger industrial enterprise, a company, a kitchen, or a shop. The first part of the programme is a basic course (20-40 weeks) that finishes with an exam, and then follows the main course (3 to 3½ years) which alternates between theoretical courses at a VET college and practical training in the company. In June 2014, the Danish parliament passed a reform of the VET-system. The reform aims to offer young people high-quality VET programmes and good opportunities for further education and training Admission requirements and tracks for gifted students will be introduced. In addition, continuing training for teachers is a priority to improve quality of teaching (Ministry of Education, 2014). The four overall objectives are:    

More students must choose to start a VET immediately following from level 9 or 10 (age 16). More people must complete an internship The VETs must challenge all students so they may reach their fullest potential The trust and well-being in the VET system must be strengthened

Key stakeholders find the reform necessary and the objectives for the reform relevant and realistic. The objectives will be achieved through several initiatives – focusing on internships the initiatives in the reform build on 12 initiatives for improvement of the internship situation.

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The provision of internships meaning companies being willing to take on a trainee has been and still is a challenge which increased throughout the financial crisis. In order to improve the situation, 50 internship centres were formed all over the country in an agreement concerning Better VETs and a stronger education guarantee in November 2012. The centres coordinate the programme for students who have not obtained a regular internship agreement with a company. This involves providing school-based internships in a combination with some training in a company. This has increased the number of students being able to continue and fulfil their education; however there are still currently around 6,000 young students, who are looking for an internship. The objectives for the reform is that it will strengthen the opportunities for students to obtain an internship, as the students will be more qualified, clarified and motivated and thus attractive for companies, which consider accepting an intern. This is due to, among other things, the introduction of admission requirements, the increased significance of the basic programme examination, the trade committees’ access to establishing requirements for admission to the main programme as well as a strengthening of student skills and clarification through the new basic programmes (Ministry of Education, 2014). 1.3 Key stakeholders in the internships programmes Key stakeholders include a number of different actors and the cooperation between these: 

Educational institutions on the different levels



Companies and workplaces providing internships on different levels



Public Employment Services and municipalities’ employment efforts. These were merged as a result of a comprehensive structural reform that came into effect on 1st January, 2007. They play a major role in the implementation of measures for unemployed people.



31 government-recognised unemployment insurance funds nation-wide (A-kasser in Danish). These unemployment insurance funds play a major role in coordinating internships for the unemployed, who are insured.



Social partners: The two main organisations representing the social partners are: o

o

The Danish Confederation of Trade Union (LO) who is the largest national trade union confederation in Denmark for workers in both the private and the public sector The Confederation of Danish Employers (DA), the largest employers’ organisation with a membership of more than 28,000 Danish private companies in manufacturing, retail, transport, services and construction.

Besides LO, the two most representative umbrella employee organisations in Denmark are the FTF, the Confederation of Salaried Employees and Civil Servants, whose membership

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comprises white-collar and public servant groups particularly in the public sector and AC - the Danish Confederation of Professional Associations, comprising mainly university graduates.

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2) Internships Programs/Schemes

The following chapter will describe the specific programs and schemes in more detail. Internships fulfil a dual function in the employment system: helping people return to the workforce after a period of unemployment, and to support the entrance of students into the labour market. Overall, there are two kinds of internships programmes. One of them is in relation to education and training and the other in relation to the public employment system. 2.1 Internships in relation to education and training The internship programmes in relation to education and training consist of three types of internships offered by different educational institutions. The main difference between the internships is how much they are an integrated part of the degree and necessary in order to graduate. 2.1.1 As part of vocational education and training The Danish vocational education and training programs (VET) are alternating programs, where practical training in a company alternates with teaching at a vocational college. Internships is therefore one of the core elements and necessary in order to graduate. The objective of the VET programs is to motivate young people to complete training that can qualify them for employment and at the same time, accommodate the needs of the labour market. Many students in vocational education and training prefer studying in practical subjects, which means that the learning process is closely linked with internships in order to engage the individual student. The VET programs consist of a school-based basic course (20-40 weeks) and a main program (3 to 3½ years). The main programme alternates between company-based training (2/3) and school-based training (1/3). The student must enter into a training agreement with a company approved by the social partners (a confederation of representatives of employers and employees) in order to accomplish the main program. The social partners have considerable influence on and thus, great responsibility for VET. Training placements are based on a contract or training agreement, between an apprentice and a company. All training companies are approved by the social partners via the relevant trade committee and thereby have to live up to certain requirements, for example a certain level of available technology and ability to offer various tasks in an occupation. Colleges and companies work closely together to make sure that training takes place in accordance with the law when compiling an individual education plan for the student in question. These plans are compiled for every student to ensure coherence between the student’s wishes and the actual training programme. Students also have a personal educational portfolio that is intended to increase their awareness of the learning process. While the educational plan indicates learning pathways, how the various elements of the training programme, both college-based and workplace-based, combine to provide the student with the necessary competences, the portfolio documents indicate actual learning and skills acquired by the student.

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Professional committees related to specific vocations play a strong role in approving and setting the framework for internships. There are 111 vocational education and training programs, each of them can lead to a number of vocational specializations. The Danish Ministry of Education has structured all programmes within the Ministerial Order on vocational college. In the order, the professional committee in the school must approve the internship, and should ensure the best possible educational environment in internships companies, including dealing with disputes between students and internships companies. For the students who are not able to find an internship in a company or organization, as mentioned before, this is one of the major challenges to the system. They will be able to get a school-based internship in a combination with some training in a company at one of the 50 internship centres, which were formed all over the country in an agreement concerning Better VETs and a stronger education guarantee in November 2012. The final assessment in the VET-programme undertakes through a mixture of a school-based exam and a journeyman’s exam (‘svendeprøve’). The use of both assessment methods is most common and focuses on both practical projects and theoretical knowledge. External examiners, appointed by the local trade committees, conduct the assessment. On passing the journeyman examination, the student achieves the qualification and skilled worker status.

2.1.2 As part bachelor degree Similar to the VET programs, internship as part of a bachelor degree has strong relation to practice, due to objective and purpose of bachelor degree in the academies of professional higher education. The main objective of the academy profession programs is to educate skilled labour forces in both private and public sector, for example teachers, social workers, nurses, technical and mercantile workers. The academies of professionals must also meet the requirements for the provision of professional education in its coverage – it may be in a region or a part of a region. The institutions have an obligation to ensure education supply in all areas and serve as regional knowledge institutions that have a close interaction with regional stakeholders, including business, customers and growth forums to ensure a broad geographic coverage of educational programs. Because of these objectives, the bachelor programs combine theoretical studies with a practically oriented approach in form of mandatory internships in workplace, and are generally orientated towards specific professions or job functions. The bachelor programs normally have duration of three to four years with a scope of 210 ECTS, including at least 6 months of mandatory internship. The requirement for mandatory internship was introduced after August 1st, 2009, according to the legislation on academies of professional higher education3.

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Act on vocational education and professional education, Act No. 207 of 31/03/2008

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There are approximately 27 vocational academy profession programs. These programs exist in the following fields: Business and Economics, Technology, Information technology, Laboratory technology, Social sciences, Design and Healthcare. The Ministry of Higher Education and Science have structured all programmes within the departmental order on academies of professional higher education4. Under the provisions of this order, the internship must meet the following criteria:     

Consist of at least 30 ECTS credits and be organized so that there is a learning progression in line with the academy profession learning goals Be prepared, implemented and processed in cooperation with the subjects in the programmes and due to the teacher’s academic competence Be approved by the academies of professional higher education due to a quality scheme, which the school has formed Include a training plan for the student in accordance to the students stage in the education process Include a written bachelor project by the student, based on a problem encountered within the internship, involving research literature in the area of primary schooling.

According to the law on vocational education and professional higher education the academic institutions must ensure that there is always provided the required number of internship agreements with private or public companies. 2.1.3 As part of university degree Internships as part of a university degree are distinguished primarily from other types of internships due to the fact that they are largely voluntarily and not a requirement in order to graduate. However, the Danish education system recognizes the importance of internships as students leave the higher education and before entering the labour market and a range of mechanisms have been put into place to support students spending time as interns within a range of companies that are suited to their employment and educational goals. Internship is offered when the student conducts the master’s program. In Denmark, universities offer research-based higher education at Bachelor, Master and PhD-level. The degrees cover academic disciplines such as humanities, social sciences, natural science, health science, technical science and theology. Often there are no compulsory courses on the master’s degree, so student are comparatively free to construct their own program, which facilitate individual specialization and focus, especially at the Bachelor’s level. The Master’s program provides opportunity to take on academic internships, both in Denmark and abroad. Internship as part of university degree is a pre-professional learning experience that offers relevant academic work experience related to a student’s field of study or career interest, e.g. if the student is interested in public administration, the internships could be pursued in embassies, ministries, local authorities, EU institutions and governmental and nongovernmental organization.

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Bekendtgørelse om erhvervsakademiuddannelser og professionsbacheloruddannelser, BEK nr 1521 af 16/03/2013

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An internship integrates the student’s academic knowledge with practical experience in a business, organization, or government setting. The student participates in a project at a work place for the purpose of applying knowledge and competencies learned during the university education to a practical project in a company or an organisation thereby adding to the student’s experiences and competencies. Companies have been enthusiastic about the availability of internships. For the businesses, the internship is an opportunity to connect with students at a very early point in their career benefiting immediately from their competencies as well as having the opportunity to recruit students for more long-term employment. Many university programmes formally recognise the value of internships and offer credits. If an internship is completed, and the students achieve ECTS credit for an internship, the student must first enter a formal agreement with the university degree program. Faculty and department boards have the most oversight responsibility for internships, though this responsibility is often delegated to a specific Internship Coordinator within various departments or faculties. This varies across universities, and even across academic departments. The Boards of studies and directors of studies, which is an organ within the university comprised of faculty members, ensure the agreement and are mainly responsible for ensuring the student activities are in the best interest of both current educational goals and long term employment prospects. This includes approval of applications for credit. This is established in the Danish Act on Universities by the Danish Ministry of Higher Education and Science5 If the board has approved the internship, the student will receive ECTS credit that can vary from 10 to 30 credits for duration of six-month internship. One of the main responsibilities the board has is the quality assurance. There must be a strong learning component to the internship, as well as a clear written contract describing the internship in as much detail as possible.

2.3 Internships as part of the public employment system 2.3.1 Adult apprenticeship programme Since 2008, Denmark has had a special offer for adults over 25 years of age. The programme involves people that are unskilled or have an out-dated education. For these people the apprenticeship programme helps the person with a combination of periods of training at college and at a place of work, based on a contract of apprenticeship leading to a vocational qualification. The Danish jobcentres, that are a part of the municipalities, are administrating the adult apprenticeship programme, which is based on legislation that specifies requirements to the educational, training and contractual elements of the apprenticeships. The apprentice receives contractual wage provided by the company and compensated by the policy programme while attending the programme. A large part of the training happens in the

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Bekendtgørelse af lov om universiteter (Universitetsloven), LBK nr 960 af 14/08/2014

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workplace, where systematic intergenerational learning takes place as the apprentice is being taught a craft from one or more colleagues. The trainee receives a salary during the work training as agreed in the contract. This should be at least as high as of the lowest wage of an unskilled worker in that sector. If no wage agreement exists, the salary must be equivalent to that for work of a similar nature. The adult apprentice receives a salary subsidy during the whole apprenticeship period, i.e. both whilst training with an employer and while at college. The work-training subsidy is paid by the jobcentre, while the subsidy during school education periods comes from the Ministry of Education. As the administrative authority, the jobcentre decides whether the relevant persons can enter an adult apprenticeship contract. In addition, the jobcentre administrates the subsidies to which the employer is entitled. To qualify for the subsidy, the apprenticeship contract must be entered with a person without a vocational qualification or other work related qualification comparable to or higher than the level and duration of a vocational qualification, unless the person has not used the qualification over the last 5 years. The subsidy cannot be given to an employer already receiving other public subsidies for the apprentice during the apprenticeship. 2.3.2 Job training Municipalities are actively involved in training for the unemployed. As part of the law on an active employment policy in Denmark, the municipalities have a number of tools to help unemployed return to the labour market. One of the most popular is the job training program, which means that the unemployed is offered an in-service training process either at a public or at a private workplace. The in-service training process takes between 4 to 13 weeks. Here, the person is introduced to an industry and a specific company where he or she will be assigned a mentor to provide support both professionally and socially. Job training as part of the active employment policy contributes to a clarification and training of an unemployed labour market readiness, as well as part of the education-oriented actions. The purpose of job training can be:    

To examine whether there is a good match between professional and personal skills and a specific type of job To train professional and personal skills Gain work-related experience for a company that does not have a concrete job opportunity, but would nevertheless be considered when the opportunity occurs Test job options outside the primary work-related experiences.

Job training is a part of the new measure “nytteindsats” that was introduced in the law on active employment policy, which means that job training is used for unemployed people who are able to work and are either awaiting to start a new job or an education. The internship is seen as a process to make the unemployed who are able to work clarified and suitable to obtain qualification to ordinary job. The job training is generally restricted to companies where the persons in job training have not been ordinary employed or employed with a wage subsidy in relation to other policy programs.

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2.2 Assessment of internships

Overall, there is a high degree of consensus that the system works well as part of an active employment policy as well as support for labour market development. The assessment of the system from the perspective of the key stakeholders and based on the literature is that there are significant strengths to the approach used in Denmark, and that overall the system serves the labour market well. Any issues with the system are not fundamental criticism of the overall approach, though there are some areas where the system could be improved. The main issue with the system is that in periods of shrinking employment, some businesses are not able to offer internships to students or to the unemployed. The pipeline closes. This causes a bottleneck for the pathway to employment for many of the participants of employment support or higher education programmes. The main impact of the systems is that the link between education and training and employment is closer. Internships make the students more ready for the labour market. For example, in some systems in Europe the VET-systems offer mainly school-based training which are part of educational programmes and often designed by ministries of higher education, which influence the graduation rate (more students obtain the qualification). However, the students’ skills and competences are to a large extent decoupled from the needs of the labour market. In these school-led systems, students are often taught either theoretical lessons or approaches that are not related to the specific industry in which the students hope to gain employment. The stakeholders agree that the approach in Denmark, with an emphasis on work-based internships that are separate from the schools, work well to help align the students’ competencies with those of the industry. Moreover, given that internships are often coupled with a brief period of further theoretical training, the lessons of the classroom are supported because students have a basis in applications of the knowledge, and can assess the theory with a critical approach based on relevance to the real world. Thus, both the educational component and the labour market function are enhanced through internships. Businesses have been concerned about the prominence of theoretical education in the education system, particularly universities. The stakeholder stated that the Danish system performs well on the end product: companies are satisfied with the skills of the students graduating out of universities, and there is a noticeable, though informal, understanding among business associations that participation in an internship generally leads to students being prepared to start as entry-level employees. The outcome from the perspective of business associations is that there are very positive impacts of internships, and that it is a stronger form of education than university (bachelor-only or master’s programmes) or technical education on its own. However, there are some bumps on the way. The first is that there are only few students finishing a complete circulation of a work-based internship and back to education due to lack of internships available. This can act as a bottleneck that stops of the normal flow of prepared interns into the labour market after a period of unemployment or education. That being said, stakeholders are in agreement that the current reforms to the various subsystems linked to internships will to a large extent meet the current challenges of developing

17

the labour market such as up-skilling young uneducated people. While implementing new reform takes time and resources and sufficient number of internships will continue to be a challenge, the overall system as such is well placed to serve participants, educational providers, insurance funds and companies. 3) Internships financing 3.1 Internships in relation to education and training 3.1.1 As part of vocational education and training The Danish Parliament (Folketing) sets the general framework for the vocational education and training system. This applies to the management, structure and objective of the programmes and the frameworks for the institutions’ financing and development. The financial scheme for VET-programmes concerns both the school-based part and the internship of the VET-programme. The school-based part is financed by the state on the basis of a taximeter system. The taximeter system determines the funding due to the taximeter “rates” that are applied to the activity of institutions. Students are free to choose their school and there are no tuition fees. Taximeter rates depend on the field of education and are set by the government according to various criteria, including political priorities, teachers’ salaries and building and administrative costs. In 2011, the level of national funds to basic vocational education was 1 billion DKK (app. 137.000.000 EUR)6. On the side of employers, there are various direct and indirect subsidies to internships although they are not fully predictable for the employer. All companies, both private and public, contribute to the Employers’ Reimbursement Fund by a fixed annual amount for each of their employees (in 2013, around 400 euros per year)7. The student receives wages from the company for his or her work during internship. The Employers’ Reimbursement Fund reimburses the company for the trainee’s wages when the student is attending college. The students are expected to finance their wages through productive work during their internships. Before the internship begins, the student and the company must enter a training agreement, which include information on the wage that the company shall pay to the student during the internship period. Internships wages are set at the sector level through collective agreement and typically reach 40 to 50 % of the minimum wage, depending on the experience and the expected productivity of the worker. In the absence of a collective agreement, a board consisting of a representative from employers and a representative from the labour side sets the minimum wage. 3.1.2 As part bachelor degree The school-based part is, in line with VET-program, financed by the state, based on a taximeter system, as well as there is no tuition fees for students. The term ‘taximeter system’ is the principle for distributing state funding, where the amount of finance is determined by a

6 7

EU final Guidebook, version 20/12 2013 OECD Economic Surveys: Denmark 2013: p. 93

18

range of objectives, e.g. activity-level of teaching and number of students.8 The education institutions are self-governed which means that one of their main income factors are distributed through the taximeter-system. The purpose of the system was to introduce a financial system that makes the education institution more orientated towards results and incentives. During the internship, the student is ‘hired’ by one or more public and/or private companies while attending the internships. However, the student is not always paid during the internships in contrast with the VET-programme. This depends on the individual program, which is decided by the Ministry of Higher Education and Science in the formal educational-order. For example does the ministerial order about teacher’s bachelor degree include four different periods of internships, where the first and last periods are unpaid, while the second and third are paid.9 During the non-paid internships periods, the student is entitled to public support due to the State Educational Grant and Loan Scheme (SU). For student enrolled in higher education, such as academy profession, are the students entitled to a number of monthly grants corresponding to the prescribed duration of the study, as well as the period of the unpaid internship. The amount of grant may vary due to students living situation. All students living with their parents are supported with a lower grant than students living for themselves are. There are a number of specific rules in the grants and loans scheme that is administrated by the Danish Agency of for Higher Education in collaboration with the educational institutions and under the auspices of the Danish Ministry of Higher Education and Science10. 3.1.3 As part of university degree The financing of internships as part of a university degree can vary due to the fact that they are largely voluntarily and not a must in order to graduate. Most of the internships are formally part of the Master’s program and the student will achieve academic ECTS credits for the internship. If the student will achieve credit for the internship, the student is entitled to public support as part of the State Educational Grant and Loan Scheme (SU). For students enrolled in university degree as part of the higher education system, they are entitled to a number of monthly grants, corresponding to the prescribed duration of the chosen university degree. The amount of grant may vary due to students living situation, but for internships as part of university degree, is the most typically grant in 2015, 5.903 DKK (app. 792 EUR) per month. In combination with grants, students are offered supplementary state loans (grants 2/3, loans 1/3 of total support). The interest rate for these loans is set by Parliament. Students must start paying back state loans no later than one year after the end of the year in which they graduate or give up their studies. The loan must be repaid within 15 years. The grant and loan administrated by the Danish Agency of for Higher Education in collaboration with the university and under the auspices of the Danish Ministry of Higher Education and Science11.

8

Read more here: http://eng.uvm.dk/Education/General/The-Taximeter-System

9

Bekendtgørelse om uddannelse til professionsbachelor som lærer i folkeskolen, BEK nr 231 af 8/3/2013 10 Bekendtgørelse af lov om statens uddannelsesstøtte (SU-loven), LBK nr 39 af 15/01/2014 11 Bekendtgørelse af lov om statens uddannelsesstøtte (SU-loven), LBK nr 39 af 15/01/2014

19

Furthermore, internships may, or may not, be paid by the given private or public company. It is important for any company or organization offering internships to consider whether an internship should be paid or unpaid. If the internship is unpaid, it does often require the state grants and loans, which require, that the internship is approved for ECTS credit, and thus a strong learning component for the student in order to justify the academic credit. In some internships it is common to offer some compensation to students, such as accommodation and transport, in otherwise unpaid internships. Assessment of financing Stakeholders are strongly pleased with the financing system that underpins the availability of internships and of a supply of participants in internship programmes. In many ways, the underlying conditions in Denmark allow internships to happen. Primarily, free education and the State Educational Grant and Loan Scheme (SU) enables students from all backgrounds to go into education or training activities – or at least the financing part is not a barrier as in several other countries, where the student need other sources of income to be able to pay tuition fee and all living expenses. In several countries, internships are increasingly only available to wealthy families, and people with advantages are further advantaged by having access to work experience while other students are required to work at jobs that do not contribute to their career ambitions. In addition to the subsidy that students receive, which enables them to take time to pursue internships, the financing approach is structured in a way that generates further benefits. The fact that the interns in the various systems are employed by the employer and paid a salary is important both in terms of financing the programme and in terms of creating the best learning possibilities. In this way, the intern is not considered to be “just a visitor” in the Danish system, but an integrated part of the workforce and the production of a given workplace, that plays under the same rules and norms. The tasks that the interns carry out are as valuable to the workplace like the rest of the employees – this also makes it more real for the intern and allows them to gradually be integrated into labour market with a series of increasingly concrete responsibilities. Moreover, the fact that the employers get reimbursement for the salary, when the intern is back at the school is important - the time at school does not become a financial barrier for the employers. The financing system is therefore created in a way that removes structural disincentives from participating in the internship system, either on the part of educational institutions, the internship participants, or the businesses that create spaces within their organisations for interns. 3.2 Internships as part of the public employment system 3.2.1 Adult apprenticeship programme According to the law on active employment policy by the Danish Ministry of Employment12, the jobcenter in each municipality can give subsidies to employers who enter an adult apprenticeship. The employing business can receive a subsidy equivalent to about 20% of the

12

Bekendtgørelse af lov om en aktiv beskæftigelsesindsats, LBK nr 990 af 12/09/2014

20

apprentice’s salary, thus adding an extra incentive for prospective employers to take on an adult trainee. The adult apprenticeship participants have the right to get paid to the corresponding contractual wage, and at least equal to the minimum wage, a non-skilled worker is entitled within the specific area of job. The contractual wage varies due to the profession and industries as well as public or private. It is therefore difficult to inform about the exact wage, but according to the wage rate by industry contractual agreement, is the wage per hour 8,7 EUR in step one (0-1 year) and 15 EUR per hour in step five (4< year). Furthermore, companies that hire unskilled unemployed, as well as unemployed people with out-dated skills and skilled unemployed with at least 12 month unemployment, can get an increased subsidy of 40 DKK (app. 5,3 EUR) per hour throughout the internship period. Unskilled unemployed with less than 2 month of unemployment and unskilled employees are also covered by the financing scheme, but the subsidy for the company is 30 DKK (app. 4 EUR) per hour. But according to the evaluation on the adult apprenticeship programme it is more expensive for companies to hire adult apprentice compared with ordinary students less than 25 years of age. This is due to higher payroll costs for adult apprentice who are not fully compensated by the subsidy.

3.2.2 Job training Job training is a part of the active labour market policy, which means that it is legislated by the Ministry of Employment in the law on active employment policy13. This means that the financial scheme for job training programme is free for the company, thus the unemployed will be paid the equivalent social benefit rate during the internship. The social benefit rate depends on the rights of unemployed persons in receiving of a subsistence allowance. Unemployed insurance is a voluntary scheme administrated by the unemployment insurance funds. The Danish system, as well as the job training programme, differentiates between the situation for the unemployed insured persons and the unemployed uninsured persons. The unemployment insurance funds (A-kasser) are private associations of employees or self-employed persons organized for the sole purpose of ensuring economic support in the event of unemployment. Unemployment benefits are largely financed by the State in form of monthly social security benefit. According to the difference between insured and uninsured unemployment does the job training programme financing scheme for persons internship depends on the differentiated rates: 



13 14

Insured unemployed person in job training: The minimum rates depend on age, seniority and for example, whether the unemployed are self-employed. The insured unemployed persons receive the same rate regardless of, whether they are in job training or in other activation based on the Danish approach to an active labour market policy. The minimum rate is 668 DKK (app. 90 EUR) per day14. Uninsured unemployed person in job training: The minimum rates depend also on a number of factors, including age, whether the unemployed are living at home / living

Bekendtgørelse af lov om en aktiv beskæftigelsesindsats, LBK nr 990 af 12/04/2014 http://bm.dk/da/Tal%20og%20tendenser/Satser%20for%202014/Dagpenge.aspx

21

with their parents; have dependents in family and iare married or cohabiting. The minimum rate is 2.524 DKK (app. 400 EUR) per month – due to an unemployed person under 25 years who is living with his/her parents15. The rates apply from January 2014, see attached link for a detailed table.

Assessment of financing The views tend to be political about whether the level of benefits is high or low when doing job training, and the issue frequently gains coverage in the Danish media. There is some debate about the structure and rate of remuneration for internships. The fact that adults who enter into the adult apprentice scheme obtain a higher salary than the usual interns in a company is a prerequisite for the adults to be able to go into the programme, especially those with higher expenditures due to family obligations and dependent family members (children and older parents). Some informal evidence suggests that this could potentially distort the pipeline for internships, moving some companies to favour interns that have recently been in school rather than the generally older adult apprenticeship programmes.

4) Internships Providers and Target Groups Providers of internships on all levels and for all target groups are a combination between private companies and workplaces in the public sector. 4.1 Educational and training sector The target groups for internships in the education and training sector are students enrolled for the programmes on various levels. The internships are an embedded part of the dual VETsystem and of the bachelor degrees, meaning the target group is all students on these levels. In the end of 2014, the number of students at the VET-level having an internship was counted around 80,000 students including both company-based and school-based internships (Ministry of Education). For bachelors the number in 2013 was around 28,000 students (Ministry of Education). On university level the internships are not mandatory and there is no official registering of the number of use; however the target group is still wide including students from a variety of programmes. Considering the providers of internships to the VET-system having interns is an embedded part of the system. However, the recent financial crisis as previously mentioned have caused some challenges in terms of having enough internships in the private sector available for all students. This led to the establishment of 50 internship centres in November 2012 – centres that coordinate the internship programme for students who haven’t obtained a regular internship agreement with a company. This involves providing school-based internship in a combination with as much training in a company as possible.

15

http://bm.dk/da/Tal%20og%20tendenser/Satser%20for%202014/Kontanthjaelp.aspx

22

Some providers cover the entire internship throughout the duration of the programme, other providers cover parts of the internship. The provider must be approved as a provider by the educational institution. For the VET-system the website (www.praktikpladsen.dk) provides a list of companies in the various disciplines and specialties that are authorized to recruit students. If the student finds a company, which is not on the list, a committee at the educational institution will be able to approve the company according to a set of criteria including:  The company needs to have at least one employee with relevant professional expertise to handle students' training  The company needs to have appropriate equipment and machinery  The company needs to be able to offer work addressing the educational objectives of the student programme.

Having interns as part of the bachelor degrees is also an embedded part of the system among the providers, which to a large extent is the public sector. Here the educational institutions have agreements with the relevant type of public sector workplaces, which is part of the duties of a public workplace. Providers of internships as part of university degrees are different from the two above types. Here it may be private companies, public sector workplaces or third sector organisations. As internships at this level is not mandatory for the students, the providers of this kind of internships are workplaces that want to contribute to the education of students and experience that they gain valuable labour by doing so. On all levels of education taking up an internship abroad is possible, however non-Danish providers need to be approved according to agreements at the relevant educational institution. Concrete examples of types of providers can be seen in table below: VET

Bachelor

University

Private sector

Craft industry,

Public sector

Hospitals, day-care, Hospitals, day-care, Government offices, administrative offices schools, police governmental organisations

Third Sector

Consultancies

NGO’s provides NGO’s opportunities abroad, such as doing an internship in a hospital, schools, children’s home in Africa etc.

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4.2 Employment The target groups for internships, as part of employment policy are the unemployed, both insured and uninsured, people on sick-leave and young people under 18 years of age. However, focus is on upskilling of low-skilled people through the adult apprenticeship scheme and/or job training. There are certain criteria that the unemployed needs to fulfil as descripted previously. The number of unemployed people making use of job training is seen in the figure below. The figure shows that job training is more commonly used among the uninsured unemployed, which corresponds with the fact that much low-skilled people are uninsured16:

Jobtraining

58697

58893

44567

16337 2010

58652

23560

18947

14640

2011

2012

2013

Insured Uemployed

Uinsured Uemployed

Source: Statistics Denmark March 2015

Considering the use of the Adult apprenticeship scheme, the most updated official numbers are from 2011. During the years 1997-2011 about 49,000 people has started the programme. However, in 2009 the active employment efforts shifted from state to local level (jobcentres), which lead to a data breach. The reporting from the local level in this period was not necessarily accurate, and the decline in numbers is therefore slightly overestimated (Deloitte, 2013). The providers include workplaces/organisations/companies in all three sectors and on various areas and fields. Providing internships for unemployed in private companies or third sector is often seen as part of a company’s social responsibility efforts, whereas it is understand as part of being a public workplace.

Assessment of providers and target groups All types of participants in the labour market benefit from the opportunity to pursue internships. The VET-system including the internships offers a different way of learning – the target groups may therefore be people who need to learn in a more practical way than other types of

24

academic institutions offer. Similarly, the target group for the bachelor degrees as well as the VET-system all needs to be motivated by learning within the interaction between theory and practice – like to use their skills and abilities in this way. Advanced education through master’s degrees is supported by experience in internships, which assist in applying the theoretical knowledge to the workplace, and conversely by applying “real work” knowledge back to their education. This enhances both the educational experience and the transition to the workplace. Having the public sector playing such a large part of the providers is clever as this is a way to both educate and train people at the same time as running the public institutions. Financing is obviously important, as are the framework conditions that are included in hiring practices, employment law, and the accreditation to the educational institutions themselves. All of these mechanisms support the availability of internships. The private sector is vulnerable to the economic downturn, which may challenges the number of internships. However, having large parts of the training in a company is valuable in order to be ready for the type of job, which is waiting for the students and/or unemployed. Corporate social responsibility plays a vital role for several of the companies taking in especially the unemployed people –making it a win-win situation for all.

5) Internships Effects and Results for various target groups 5.1 Internships in relation to education and training As part of VET-programme An analysis committed by the European Commission in 2013 shows that the Danish vocational education and training, where internships are an obligated and core element of the education, considered as very effective in facilitating student-to-work (STW) transitions, as well as the completion rate is about 70 %17. In overall effectiveness, about 10 % of young people who complete VET-programme are on unemployed social benefits, which considered low in the view of target group profile. The programme in overall also improves the students’ professional, social and inter-personal competences. In-depth focus on employment outcomes show that those who started the programme in 2007, 60% were in education or employment in 2010. Due to a relatively high dropout rate (30%) and the rather low number of participants, the programme does not have a major impact on youth unemployment. However, the completion of the scheme reduces by half the likelihood of a VET-student requiring welfare benefits. According to the analysis by the European Commission, a number of factors contribute to its success, including strong social partner involvement, close links between education, business, and rigorous certification procedures that lead nationally recognized qualification. The strong practice-related focus due the internships ensures that both strong and weak students benefit.

17

EU Final Guidebook version 20/12 2013

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As part of bachelor degree In 2006, the Danish Evaluation Institute (EVA) conducted an evaluation on internships in academies of professional higher education. Despite the fact the evaluation is from 2006, is it still interesting in regards of the main effects for internship target group, because the content of the internships are most similar to how it works today. The only major difference is that the internships are mandatory for at least 6 month, due to the new legislation in 2009, but besides that are the internships periods comparable today than before the new legislation. The evaluation is especially interesting because of the specific focus on internships. EVA conducted nine workshops with students who have undergone internships. In overall does the evaluation shows that internships are a great strength, but on the other hand, are associated with a number of challenges, which is connected to the preparation, organization and followup of the internships.18 In general, the challenges associated with the preparation, can be handled by strengthening the cooperation between the education institution and the work place through a continuous and systematic dialogue. For example, the evaluation highlight that more clear demand to the student’s preparation-phase can meet some of the challenges, as well as a focus on joint target agreement between the student and the workplace. The challenges within the actual internships concern in overall the synergies between the educational practical and theoretical part. In order to meet the challenges does the evaluation show that the student must be more reflective during the internship, for example can the student keep a logbook, or the educational institution can arrange meetings between students during internship, where they can discuss professional and individual challenges. Moreover, it is also important that the supervisor in the workplace is competently and responsible in order to improve the students theoretical and practical part during the internship. For example, clear guidelines or mutually binding contracts can secure the achievement of the objective in the internship. Finally, the evaluation highlights that there are challenges associated to follow-up the internship. Therefore, it is important to draw the practical experience during the internship in the continuous education, thus involve the learning that has taken place in the practice of the learning that takes place in school.

5.2 Internships as part of the public employment system The Danish national centre for social science research (SFI) has carried out a review of 35 Danish and foreign studies, published in the period from January 2000 to 201219. The report brings together the knowledge available about the effect and outcome of business-oriented interventions for exposed unemployed, including job training initiatives. In overall, the picture shows that business-oriented intervention in the private and public sector has a positive impact on employment, though the effect is more significant in the private sector. This result includes internships as part of the job training programme, which means that job training in private companies is more effective than in public sector. However, the review 18 19

EVA, 2006: Praktik i professionsuddannelser – udfordringer, erfaringer og gode råd SFI, 2012: Effekter af virksomhedsrettede aktivering for udsatte ledige

26

includes all kind of business-oriented intervention and can therefore not solely conclude the effect on job training. The literature specifically about the effects and results of job training is limited. An exception is Rosholm and Equivalent (2011), which shows that job training, has broadly positive (although small) effects and no significant effects for all groups, except young men. Other studies show positive effects for immigrants (Heinesen et al 2011) and no positive effect on the long-term benefit claimants (Skipper 2010)20. The existing knowledge on the effect and results of job training show that the challenge for job centres is to focus the internships on the target groups, where the instrument has an effect. Moreover are internships often offered in combination with other activation tools, such as wage subsidy or education and training programme. This makes it difficult to isolate the effect of job training. As indicated by the Deloitte survey in 201321 the adult apprenticeship programme outcomes showed several positive effects that can be traced both in terms of employment rates and in terms of income level for apprentices going into the programme from unemployment. These effects are seen among both the skilled and the low-skilled, but the effects are greater among low skilled and uninsured persons, which may reflect the higher level of qualification obtained through the programme. On the other hand, there are negative effects in terms of both employment rates and income level for apprentices going into the programme from other employment. Furthering this, the evaluation showed that the programme does not have negative consequences for the regular VET programme in relation to education and training. Assessment of effects and results for various group The impacts of the programmes tend to be informal and have not been studied in a systematic way. However, stakeholders are clear that a series of incentives needs to be built into the internship system. It cannot be artificially forced onto a group of students, unemployed, or business sectors that do not see the benefits. To get the best result of education and training, education and training should only be targeting unemployed persons who are motivated to learn and in need of skills upgrade. The strongest improvement that could be made to the current system would be to strengthen the opportunity to participate in “bridging schemes”, where the internships in companies are followed up with business-oriented initiatives. After having spent time at a company, the interns would benefit from better opportunities to return to the company under special provisions, and then gradually become integrated under normal salaried conditions. A second improvement would be to encourage private companies to hire apprentice and create more job training, either through subsidies, tax credit, or opportunities to benefit from long term staff investments though pre-specified contract terms with the interns.

20 21

FCE, 2011: Hvad virker i aktiveringsindsatsen? Deloitte, 2013: Adult apprenticeship scheme - Effects, implementation and incitements

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6) Internships as a part of further education system (lifelong learning/continuing vocational training) Lifelong learning is highly prioritized in Denmark. As the table below shows, there are many more people in Denmark then in the EU28 countries that participate in lifelong learning. In 2011 the percentage was 30% higher in Denmark than in EU28 countries. There is a strategy of lifelong learning, which focuses on creating better opportunities for individuals to have their knowledge, skills and competences assessed and recognized within CVET, regardless of where they are acquired. This strategy from 2007 constitutes the Government’s contribution to the realization of the common goals in the Lisbon strategy (UVM, 2007).22 From 2006-2011 there has been an increase in lifelong learning and training for both women and men aged 25 to 64. However, on average women tend to participate in lifelong training and learning to a higher degree. The average participation rate for men from 2008-2011 is 25,5 % and the rate for women is 37,5 %, meaning that 12 % more women than men stated that they received education or training in the four weeks preceding the survey during the years 20082011. The largest gender difference is in 2010 and 2011 with a 13 % difference, 26 % for men and 39 % for women. This is illustrated in the table below. (Eurostat Lifelong learning and Adult lifelong learning participation, 2008-2011). This kind of training is covering a vast number of educational levels and internships is not necessary a part of this. Lifelong learning people aged 15 – 64 years old (2008-2011)

Lifelong learning 2008-2011 9% 2011

39%

26%

32%

9% 2010

39%

26%

33%

9% 2009

37%

25%

31%

9% 2008

35%

25% 0%

5%

10%

15%

20% EU28

30%

25%

Female

Male

Source: Eurostat October 2014

22

Ministry of Education, 2007, Strategy for lifelong learning: http://pub.uvm.dk/2007/lifelonglearning/lifelong_learning.pdf

28

30% Total

35%

40%

45%

The high participation rates in Denmark reflect a national strategy that focus on specialized knowledge-intensive sectors and lifelong learning, a large public sector, and a tradition of strong bonds between social partners and the educational institutions (Cedefop, 2014).23 Vocational education and training (VET) including internships as an embedded part of the dual system plays a key role in the Danish strategy for lifelong learning. With the new reform of the VET system the aim is to provide young people with the opportunity to obtain relevant competences for smooth transition to the labour market by an inclusive and flexible initial VET system. Adult education and continuing training is responding to structural and technological changes in the labour market and aims at providing the workforce, both employed and unemployed, with new and updated skills (Cedefop, 2014). The strategy from 2007 included an improvement of the grant scheme for enterprises, which enter into vocational education and training contracts with adults. This scheme is what is today known as the Adult apprenticeship programme (see previous description). For some participants the program will be a CVET initiative as they already have a qualification, for others it will be an initial education initiative, as they do not hold any qualification prior to entering the programme. The programme is part of educational and training policies and legislation and as part of the active employment law. Job training (see previous description) may also be seen in the perspective as CVET and lifelong learning as this is a way of either updating existing skills or competences or upskilling of unemployed people. However, job training as initiative is not as such mentioned in the strategy for lifelong learning.

7) EU Law linkage 7.1 Internships in relation to education and training There is no direct link from the Danish Law to the EU law – meaning legislation and regulation – considering the development of the overall Danish education and training system. Each EU country is responsible for its own education and training system, as well as the internships related to the system. However, the EU does provide recommendations on best practice and identify common strategic goals. This is mainly administered through the Erasmus Programme, which is a European Union student exchange programme. The Erasmus Programme had previously been restricted to applicants who had completed at least one year of tertiary-level education and training, but it is now also available to high (secondary) school students, including internships in relation to the Danish VET-programme and academies of professional higher education. Internships as part of the educational and training system are also categorized according to the national Qualifications Frameworks (NQF), which is link to the European Qualifications Framework (EQF). EQF is a common European reference framework, which makes it easier to understand, compare and recognize qualifications due to an internship across different countries and systems in Europe. The EU Member States agreed to set up the European

23

Cedefop, 2014, Spotlight on VET: Denmark

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Qualifications Framework through the recommendation adopted by the European Parliament and the Council in April 2008. 7.2 Internships as part of the public employment system In general, the European Union is very strict in pursuing competition in the labour market. When the job training scheme as part of the Danish law on active employment was first introduced, a political discussion followed including comments that indicated the scheme being in conflict with the European competition legislation due to fact that companies can hire unemployed as cheap labour, and this may eventually cost jobs for ordinary employees and create unfair competition. Though, it was later declared - based on discussions with the European Commission - the job training scheme is a general measure that does not constitute state aid, thus does not create discrimination towards other institutions and distort competition. In a similar way, the adult apprenticeship scheme may be seen as discrimination and distorting competition based on the fact, that it uses state subsidy to finance companies while their apprentice attends the programme. However, in this situation the EU regulation on the Treaty to de minimis aid ensure that public support does not distort competition. This means that the subsidy by state comes within the EU’s de minimis rules, which means that there is a cap on the amount that can be given public support for the individual company. The maximum overall amount is 200.000 EUR in total over a continuous period of three fiscal years. It is each company's responsibility to ensure that the company has received EU subsidy exceeding the maximum amount.24 8) Case Studies and Good Practice Three cases have been prepared to illustrate the processes and impacts of the internship system. Given the range of sub-programmes and target groups that are potentially involved in internships in companies, the cases have been selected to illustrate the variety of approaches used in Denmark. These case studies profile specific components of the internship system, focusing on a particular piece of the overall programmes and initiatives to support access to internships in companies. Information was taken from existing research, supplemented by interviews. 8.1 The Regional Internships Unit – a single entry-point for internships One of the major challenges of the VET-programme is to provide a sufficient number of internships for students. This challenge becomes particularly clear in times of recession that makes it more difficult for companies to recruit students. During periods of cutbacks or contractions within companies, there are fewer opportunities to support internships, which present a bottleneck for the cohort of students making the transition from the higher education system to the labour market, or from periods of longer unemployment back to paid employment. The dual-track system that underpins the VET system is particularly dependent on the availability of internships. The establishment of a sufficient number of internships is essential for the dual system may consist, and companies have a great key function in the labour market

24

Commission Regulation No. 1407/2013 of 18. December 2013 of the Treaty on the Functioning of European Union to de minimis aid

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development system, which requires them to take in interns and thus educate the future workforce and therefore play an essential role in the provision of internships. However, it is very difficult for students to find an internship, which leads to insecurity about the VET-system and contributes to a loss of skilled workers in the coming years. Despite the fact that there is a loss of internships for the VET-students, is it at the same time measured that there is a large untapped potential of internships – for example in large companies that have students in their core business, but not in their support functions. In order to meet this challenge has the Regional Council in the Capital Region in 2012 started a three-year development project called “The regional internship unit”. The project works closely with the region's players in the internship outreach work, including vocational schools, job centres and Youth Education (UU). The overall aim of the unit is to ensure that there is sufficient skilled labour in the metropolitan region in the future by realizing the untapped potential internship. During the project's threeyear period, thereby in mid of 2015 establishing 2,500 additional training agreements in the Capital Region and approved 1,000 new training places in enterprises. Oxford Research evaluated the regional internship unit work in the fall 2013, where we conducted several interviews with the unit’s stakeholders.25 The evaluation shows that the unit contributes with relevant knowledge than can play into the concrete internship building, such an analysis in the construction industry about potential internships. Especially in relation to major construction projects such as metro project is highlighted as an area where the unit creates better opportunity to increase internships, this ensure sufficient skilled labour. The main reason hereby is the units function as a facilitator of networks between schools and companies through a specific focus on dialogue and corporation. The unit acts as a single entry in the internship area to make it easy as possible for companies to hire and retain trainees, and at the same time where the units’ employer have “hands-on” feeling with the potential of untapped internships as well as contact with the VET-college. A good example of the Units’ function is a recent corporation between the Danish Social Housing Sector (BL) and the Regional internships unit. In January 2014 started the cooperation with the aim of ensuring that there will be more internships created at the major construction and renovation project in the social housing areas, and partly to support housing organizations in achieving the task with modernizing 460 houses. The case of the partnership show that it has at least created 30 internships, which is a great results due to the difficulties of making contractor take in trainees. The main reason for the success is a “hands-on” action from the local VET-college. They can, in contrast with the private contractors, deliver the operational effort that it takes to follow up the good intentions there is to create internships. It requires strategic partnerships with the private constructors when there are major renovations or new construction underway.

25

Oxford Research, 2014: Midtvejsevaluering af Next EUD

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The good example gives mainly four considerations to take in mind to deal with providing internships for VET-students: 1) The regional internship unit manages the establishment of internships in the major renovation and construction projects in the social housing sector contacts with subcontractors and clarifies the subcontractors who need help to establish more training. 2) The regional internship unit participates in joint session with the subcontractors, where the possibilities of establishing internships discussed. The regional internship entitled to undertake and help subcontractors with all facets of the work to students 3) The regional internship unit shall coordinate further work with vocational schools to get students out of the established internships with individual subcontractors. 4) The regional internship unit follows up and housing organizations / contractor status updates on work progress in a defined frequency.

8.2 Positive results with advanced job training for exposed unemployed people Aabenraa Municipality in Denmark has established an advanced job training effort for young people between 15 and 17 years who are unemployed and not in education. The core component includes an internship possibility. The target groups are exposed young people that have bad experiences with the school system and little parental support, which means that they cannot complete their education or find a job. 23 young people started the advanced job training, and within the group had all have/had contact with drugs, and three quarters had mental problems. They all are therefore potential social benefit recipients, which mean that they are temporarily not available for the labour market. In 2009, the municipality established an interdisciplinary youth coordination office that combined the different actions for young people between 15 and 29 years under the same roof, with a focus on matching the youth with potential internship opportunities. This means that both employers from educational supervisors, the local jobcentre and the municipality administration on children and family are integrated as a network-based job training. The exposed young people have thereby a common base in youth initiatives, which means that they have a better connection with the system. More specifically the advanced job training offer consists of: -

Individual job training 4 days a week, up to 26 weeks with optional business-mentor Contract-based parental cooperation Weekly meeting (Friday) with joint activities, individual dialog and parents dialog as needed Monitoring and regular contact with the jobcentre and the educational supervisor Optional parallel actions, such as abuse-treatment, mental health consulting and psychiatric elucidation Individual back-up and follow-up in the first time after training start.

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The municipality established the project in 2009, and the evaluation from 2012 shows that the combination of job training, intensive guidance support by a network of employers in the educational- and employment system helps the young people. The evaluation shows that young people need an educational effort that goes beyond what normal business and education can offer. The combination of job training, intensive guidance and support apparently work for this group of young people. The job training in businesses makes sense for young people, but it is important that the job training focus on a good combination of making requirement and at the same time take care of the exposed young people. That will motivate and increase the confidence, which will qualify their choice of education and prevent potential dropout. The individual interviews have been the most important, because young people have been able to discuss their situation and future possibilities with relevant employers. The outcome of the advanced job training is that 17 out of the 23 have started educational and training programme and two are still in job training. In regards of the situation of the young people before the advanced job training offer, this can very much be seen as a success.26

8.3 Internships as part of university degree – Aalborg University The internships opportunities for a student as part of a university degree depend very much on the motivation from the single student, and vary in structure based on the department or faculty, and are different within each university. Although there is a common framework across all institutions – with input from faculty boards - the actual processes vary significantly depending on the educational programme. Internships as part of a university degree are voluntary. The universities have therefore very different internships practices, both internally between the different programs at the same university and externally between the universities. The following case will therefore be based on one good practice that show a specifically benefit for the student to be enrolled in an internship. Generally, the interest in internships is increasing – especially outside the capital, Copenhagen, where the opportunity to get a study relevant job is not so great. According to the interviewed supervisor at Aalborg University students are interested in internships because of improved career opportunities and because studies show that, it increases the likelihood of getting a job quickly. The students are also interested in testing their knowledge in practice. Furthermore, believe the supervisor that the ability to get credit for internship is the main reason for student to take an internship. However, as an added value to internships the supervisor believe that an internship at the Master’s programme help to reduce study time because the student gets motivated by “seeing themselves in a workplace”, and see what the education may be used to.

26

Evaluering af Projekt Virksomhedscenter (VPC) i Aabenraa Kommune, November 2012: http://brsyddanmark.dk/da/Viden_om_Arbejdsmarkedet/Analyser/Analyser_2012/Evaluering%20af%2 0fremskudt%20ungeindsats.aspx

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The chosen case is based on an internship enrolled in the Master’s Programme in Political Science at Aalborg University. The Master’s Programme in Political Science is designed to make students capable independently and critically of selecting and applying political-science and social-science theory and methodology so as to perform their own analyses of academic issues at a high academic level. Given their interest in the subject and the potential future career options for the students, elements of an internship must include opportunities to apply policy analysis or social science methodology equivalent to up to 30 ECTS credits of academic training. The academic internship consists of a formalized attachment to a workplace for a certain length of time (usually 5-6 month), and there must be a series of explicit and specific learning outcomes attached to the stay with company. The internship is passed via an exam consisting of two compulsory parts: a project product and a project report, and both parts must be passed through an assessment by a project supervisor. A project supervisor is always connected to both the academic internship and the preparation of the project report. PhD students, assistant professors, post docs, associate professors and professors employed at the Department of Political Science may undertake the supervision, but students are responsible for finding their own project supervisor. Pre-approval of the academic internship must be applied for from the Board of Studies, and the Board of Studies must grant it before the internship begins. An application for pre-approval must contain the following appendices:  

 

A description of the project product, which as a minimum includes the purpose of the project product, as well as the product's form. A description of the workplace, tasks of academic relevance and at a satisfactory professional level, and the length of the internship and the weekly hours. A contact person at the workplace must sign this description. An account of provisional thoughts and ideas about the subjects of the project report. The name of the project supervisor in the Department of Political Science.

Based on the information available about the proposed internship at the time of application, the Board of Studies assesses whether the internship is expected to replace subject elements on the Master’s Programme. Final assessment of an academic internship is made when the Board of Studies has approved documentation that the academic internship fulfils the requirements made in conjunction with prior approval, and the project products as well as the project report are assessed as passed. Based on the very varied practice at the internships, we have interviewed a student’s supervisor at Aalborg University to give some recommendation, based on many years of experience in the area: 

The internship should be full credit transfer because many students use internships to extend their study. By given internship credit it will make the internship more relevant to both the academic and professional work. The programs could also usefully consider

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

  

introducing “half-time internship” in which students put together a semester with 15 ECTS from internships and 15 ECTS from a relevant subject. To get the best result of an internship it is important to make the student prepare the internship before engaging a company. It is very useful to make a project plan, which describes a joint understanding for the internships form and content, most importantly to clarify work assignment before starting the internship. Make sure that students during an internships are connected with a specific department or supervisor at work To promote internship it is a good idea for universities to have a close connection with relevant industry, business, and professional organizations. University should establish clear rules for internships and merit, and make a greater effort to create a positive attitude towards work placement among both students and potential internships companies.

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II. Methodology Data collection and analysis methods Two main sources of data have been used to collect the relevant information: desk research followed by interviews with key stakeholders. The output of the data collection has been used in a main analytical report that is comprised of three components: Thematic overview, case studies and stakeholder assessments. Desk research Oxford Research has carried out desk research for two overall purposes. First, beyond the data available in statistical databases, supplementary qualitative information is required for the descriptive aspects of the analytical report. Specifically, the overview is addressed through:   

Annual reports from ministries and agencies Summaries of trends by providers of training and education Publications from social partners (industry-specific and general)

The second purpose was to gather information on the assessment policy issues. We have mainly based the information on evaluation of issues as well as descriptive information, focusing on policy priorities linked to the political process and overall economic development needs. This includes:    

Policy documents Evaluation reports of specific initiatives Academic articles Specialized media publications

Interviews with key stakeholders The semi-structured interviews with key stakeholders have been necessary to ensure that the descriptive information is valid and that the assessment of the overall direction of reform are well described from a variety of perspectives. In regards of Oxford Research extensive experience in Denmark within the fields of labour market and educational and training policy, we have contacted five key stakeholders in the field, including the areas:   

Social partners and unions Ministries and agencies Educational institutions

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III. Bibliography Cedefop, 2014, Spotlight on VET: Denmark Deloitte, 2013: Adult apprenticeship scheme - Effects, implementation and incitements EVA, 2006: Praktik i professionsuddannelser – udfordringer, erfaringer og gode råd EU final Guidebook, version 20/12 2013 FCE, 2011: Hvad virker i aktiveringsindsatsen? OECD Economic Surveys: Denmark 2013 Oxford Research, 2014: Midtvejsevaluering af Next EUD Region Syd, 2012, Evaluering af Projekt Virksomhedscenter (VPC) i Aabenraa Kommune: http://brsyddanmark.dk/da/Viden_om_Arbejdsmarkedet/Analyser/Analyser_2012/Evaluering %20af%20fremskudt%20ungeindsats.aspx SFI, 2012: Effekter af virksomhedsrettede aktivering for udsatte ledige Education and training policy - Reference to documents, strategies, laws etc. Danish Ministry of Education, 2014, Improving Vocational Education and Training – overview of reform of the Danish vocational and educational system: http://eng.uvm.dk/~/media/UVM/Filer/English/PDF/140708%20Improving%20Vocational%20 Education%20and%20Training.pdf Aftale om Bedre erhvervsuddannelser og styrket Uddannelsesgaranti (8. november 2012) (only available in Danish): http://www.uvm.dk/Aktuelt/~/UVMDK/Content/News/Udd/Erhvervs/2012/Nov/~/media/UVM/Filer/Udd/Erhverv/PDF12/121109% 20Aftaletekst.ashx Ministry of Education, 2007, Strategy http://pub.uvm.dk/2007/lifelonglearning/lifelong_learning.pdf

for

lifelong

learning:

http://eng.uvm.dk/Education/General/The-Taximeter-System Bekendtgørelse om uddannelse til professionsbachelor som lærer i folkeskolen, BEK nr 231 af 8/3/2013 (only available in Danish): Bekendtgørelse af lov om statens uddannelsesstøtte (SU-loven), LBK nr 39 af 15/01/2014 (only available in Danish): Lov om erhvervsakademiuddannelser og professionsbacheloruddannelser, Lov nr 207 af 31/03/2008 (only available in Danish): Bekendtgørelse af lov om universiteter (Universitetsloven), LBK nr 960 af 14/08/2014 (only available in Danish):

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Employment policy - Reference to documents, strategies, laws etc. Lov om Aktiv beskæftigelse (only available in Danish): https://www.retsinformation.dk/Forms/R0710.aspx?id=146382 Aktiv beskæftigelse: http://uk.bm.dk/en/Themes/The%20Danish%20Labour%20Market/Active%20labour%20mark et%20policy.aspx Forlig om Ny beskæftigelsesreform (only available in Danish): http://bm.dk/da/Aktuelt/Pressemeddelelser/Arkiv/2014/06/Forlig%20om%20ny%20beskaeftig elsesindsats.aspx Baggrundnotat til beskæftigelsesreformen (only available in Danish): http://bm.dk/da/Aktuelt/Politiske%20aftaler/Forlig-om-reform-afbeskaeftigelsesindsatsen.aspx Aftale om genopretning af dansk økonomi (Dagpengereform) (only available in Danish): http://www.fm.dk/Publikationer/2010/~/media/Publikationer/Imported/2010/2090Aftale%20mellem%20regeringen%20og%20Dansk%20Folkeparti%20om%20genopretning% 20af%20dansk%20oekonomi/978-87-92480-65-1.pdf.ashx Aftale om voksenlæringeordningen (only available in Danish): http://bm.dk/da/Aktuelt/Politiske%20aftaler/Voksenlaerlingeordningen.aspx Aftale om en reform af kontanthjælpssystemet – flere i uddannelse og job (only available in Danish): http://bm.dk/da/Beskaeftigelsesomraadet/Flere%20i%20arbejde/Kontanthjaelpsreform.aspx

Websites Ministry of Employment: www.bm.dk Ministry of Education: www.uvm.dk STAR, Danish Agency for Labour Market and Recruitment: www.star.dk CABI: www.cabiweb.dk

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IV. People interviewed Names and contact details of stakeholders/participants/companies that took part in semistructured interviews specifically for this study. Background information has been distilled through previous projects with an extensive range of interviews.    

Morten Smistrup, Consulent, LO, The Danish Confederation of Trade Union Jørgen T. Møller, Head of office for Vocational Education Legislation, Ministry of Education Henrik Saxtorph, Head of section, Ministry of Education Lene Dalsgaard, Associated Professor, Department of Political Science, Aalborg University

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