02. Vocational Education and Training (VETNET)
Paper
An Emerging Innovation for Further Specialisation of VET Graduates in the Spanish IVET System: the Case of VET Specialisation Courses
Mónica Moso1, Antonio Mondaca-Soto1, Juan Gamboa2, Itziar García-Blázquez2
1CaixaBank Dualiza Foundation, Spain; 2Orkestra–Basque Institute of Competitiveness, University of Deusto
Presenting Author: Moso, Mónica
The smart specialisation of countries and regions is one of the challenges at Spanish and European levels for their economies to become more competitive and sustainable in a global context. The aim is for regions to ‘be more specialised’ in order to become ‘smarter’, identifying their assets and strengths in terms of innovation and articulating priorities that concentrate their efforts in order to maximise results (REDIDI, 2021; European Commission, 2020; Foray et al., 2018). This concept of specialisation has been introduced in the European framework mainly through the Cohesion Policy (2014-2020), which has evolved into the current programme (2021-2027). In this programme, the role of talent has been strengthened as one of the key elements for the innovative process, not only in the scientific and technological field but also in the business and organisational field. Indeed, one of its specific objectives is to foster capabilities for smart specialisation, industrial transition and entrepreneurship (Fontana et al., 2023).
Within this framework of specialisation, the role of the Vocational Education and Training (VET) system in developing skills for absorhing and socialising of technological and organisational innovations is recognized. Thus, it is a catalyst for the acceleration of applied innovation processes in companies (Hazelkorn & Edwards, 2019), especially in Spanish SMEs. It is from a combined approach to innovation that includes both the DUI (learning by doing, using and interacting) and the STI (science and technology-based innovation) approaches (Jensen et al., 2007), that the specialisation of VET professionals becomes increasingly valuable.
The role of VET is strengthened because it is a key system for providing professionals to the surrounding enterprises, which can accelerate the transfer of skills needed to implement new technologies and/or systems in SMEs (Navarro & Retegi, 2018; Albizu et al., 2017). To identify how important is the VET system in fostering SMEs innovation process, two contextual factors must be taken into account: On the one hand, Spain has a moderate innovative performance, according to the European Innovation Scoreboard (European Commission et al., 2023), the specialisation of SMEs professionals can be a catalyst for improvement. The hybridisation of professional profiles and the specialisation of curricula and qualifications are key in this respect. On the other hand, more than 99% of the Spanish enterprises are small and medium-sized.
The most recent normative developments in Spanish VET, the Organic Law 3/2022, of 31 March, on the organisation and integration of Vocational Training (BOE, 2022) and the Royal Decree 659/2023, of 18 July, which develops the organisation of the Vocational Training System (BOE, 2023), propose different mechanisms for VET specialisation. These are the so-called ‘specialisation courses’, the curricular innovation in the basic provision of the different levels of VET, the development of applied innovation projects, the specialisation of vocational training centres, the creation of integrated centres (providing both IVET and CVET), and the creation of smart specialisation networks, among others. In this paper the novel VET figure of the “specialisation courses” is analysed in the context of smart specialisation from a territorial and business perspective. It is important to point out that specialisation courses are an innovative lifelong learning tool that facilitates the professional development of VET graduates.
Methodology, Methods, Research Instruments or Sources UsedThe aim of this paper is to present a case study of an emerging innovation in the design and format of vocational training curricula in terms of specialisation. The methodology used is both qualitative and quantitative.
On the one hand, the figure of specialisation courses is analysed through a review of scientific literature that combines studies of innovation and specialisation in vocational training systems, highlighting the Smart Specialisation approach (Albizu et al., 2017; Hazelkorn & Edwards, 2019; Navarro & Retegi, 2018; Rosenfeld, 1998; Toner & Wolley, 2016). Subsequently, a normative documentary analysis is carried out at the Spanish level around the figure of ’specialisation courses’ in the Spanish strategic and planning framework (BOE, 2023; 2022).
On the other hand, a quantitative analysis of the development of specialisation courses and the attraction of professionals is carried out, using data from both the Spanish Ministry of Education and Vocational Training (2023) and the CaixaBank Dualiza VET Observatory (2023). To this end, the enrolment is analysed in terms of occupational fields and other variables such as educational levels, occupational groups, gender and age. It also examines the main competence focuses of the specialisation courses, from the main forms of innovation (STI/DUI) (Jensen et al., 2007).
Finally, it is relevant to highlight the novelty of this study, and its initial character, given the lack of data on the efficiency and effectiveness of educational and employment outcomes up to now. Therefore, in the future it is necessary to evaluate the results of the scope of the figure of specialisation courses, and the innovative effect in their immediate environment, mainly in SMEs. It would also be necessary to evaluate the results of specialisation courses in terms of labour market insertion in the short and medium term. Although the scientific literature points out to their positive effect in terms of skills transfer, which accelerates the absorption of new technologies in small and medium-sized enterprises, the promotion of product and process innovation through specialization courses requires a more in-depth analysis.
Conclusions, Expected Outcomes or Findings- Technologically-based competence sophistication: The analysis shows that the specialisation courses are focused on increasing the level of competence regarding 4.0 Technologies and related digital systems of Intermediate VET graduates and, especially, of those from Higher VET. Therefore, specialisation is taking place primarily in technology-based professional families (STEM) and with a strong industrial component.
- Orientation towards applied innovation, mainly procedural innovation: Applied innovation is the main focus of the specialisation courses offered, including both product and process innovation, both of which are highly relevant for Spanish SMEs.
- Higher participation in specialisation courses in the moderate innovating Autonomous Regions: Those regions considered as moderate innovators have a higher enrolment in specialisation courses than those territories that are strong or emerging in innovation.
- Gender gap: As women are under-represented in the enrolment in occupational groups with a strong technological and industrial component, the same is true for the enrolment in specialisation courses.
- Need for balance between training cycles and specialisation courses: The debate on the balance between polyvalence and specialisation of Intermediate and Higher VET Levels, and their convergence with specialisation courses, arises. Moreover, the cross-cutting nature of certain technologies raises the question of whether the creation of hybrid courses could provide balance of versatile and specialised skills in VET training. This is relevant only around 33% of the professional groups have developed specialisation courses.
- Need for impact evaluation of specialisation courses: There is a need to evaluate the results of the scope of specialisation courses, and the innovative effect on their immediate environment, mainly SMEs. It would also be necessary to evaluate the results of specialisation courses in terms of job placement in the short and medium term.
ReferencesAlbizu, E., Olazaran, M., Lavía, C., & Otero, B. (2017). Making visible the role of vocational education and training in firm innovation: Evidence from Spanish SMEs, European Planning Studies, 25(11), 2057–20175. doi: 10.1080/09654313.2017.1281231
BOE (2022). Ley Orgánica 3/2022, de 31 de marzo, de ordenación e integración de la Formación Profesional. https://www.boe. es/eli/es/lo/2022/03/31/3/dof/spa/pdf
BOE (2023). Real Decreto 659/2023, de 18 de julio, por el que se desarrolla la ordenación del Sistema de Formación Profesional. https://www.boe.es/eli/es/rd/2023/07/18/659
European Commission. (2020). Europe 2020: A European strategy for smart, sustainable and inclusive growth. Publications Office of the European Union. https://ec.europa.eu/eu2020/pdf/COMPLET%20EN%20BARROSO%20%20%20007%20- %20Europe%202020%20-%20EN%20version.pdf
European Commission, Directorate-General for Research and Innovation. (2023). European Innovation Scoreboard 2023 – Country profile Spain. Publications Office of the European Union. https://ec.europa.eu/assets/rtd/eis/2023/ec_rtd_eis-country-profile-es.pdf
European Commission, Directorate-General for Research and Innovation., Hollanders, H., & Es-Sadki, N. (2023). Regional Innovation Scoreboard 2023, Publications Office of the European Union. https://data.europa.eu/doi/10.2777/70412
Fontana, S., Bisogni, F. & Renwick, R. (2023). The future of Regional Smart Specialisation Strategies: Sustainable, Inclusive and Resilient. Commission for the European Committee of the Regions. doi: 10.2863/89427
Foray, D., Morgan, K., & Radosevic, S. (2014). The role of Smart Specialisation in the EU research and innovation policy landscape. Regional and Urban Policy, 1–20. https://ec.europa.eu/regional_poli-cy/sources/docgener/brochure/smart/role_smartspecialisation_ri.pdf
Hazelkorn, E., & Edwards, J. (2019). Skills and Smart Specialisation; The role of Vocational Education and Training in Smart Specialisation Strategies. Publications Office of the European Union. doi:10.2760/828852
Homs, O. (2022). Cambios en los perfiles profesionales y necesidades de Formación Profesional en España. Perspectiva 2030. CaixaBank Dualiza. https://www.caixabankdualiza.es/recursos/doc/portal/2019/07/08/estudio-publicacion-junio-2022.pdf
Jensen, M. B., Johnson. B., Lorenz, E., & Lundvall, B. A. (2007). Forms of knowledge and modes of innovation. Research Policy, 36, 680–693.
Moso-Díez, M. (2020). VET and Regional Innovation Strategies in Spain: An analysis of the Public Agenda. In C. Nägele, B. E. Stalder, & N. Kersh (Eds.), Trends in vocational education and training research, Vol. III. Proceedings of the European Conference on Educational Research (ECER), Vocational Education and Training Network (VETNET), 220-229. https://doi.org/10.5281/zenodo.4008027
Navarro, M., & Retegi, J. (2018). Los centros de formación profesional ante los retos de las RIS3. El caso de Navarra. Ekonomiaz. Revista Vasca de Economía, 94(2), 56–77. https://www.euskadi.eus/web01-a2reveko/es/k86aEkonomiazWar/ekonomiaz/downloadPDF?R01HNoPortal=true&idpubl=90®istro=7
REDIDI. (2023). Estrategias de Especialización Inteligente en España (2021-2027). Red de Políticas de I+D+I. https://www.redpoliticasidi.es/system/files/repositorio-archivos/Estrategias%20Especializaci%C3%B3n%20Inteligente%20Espa%C3%B1a%202021-2027_Red%20IDI.pdf
Rosenfeld, S. (1998). Technical colleges, technology deployment and regional development. OECD.
Schwab, Klaus. (2016). The Fourth Industrial Revolution. World Economic Forum.
02. Vocational Education and Training (VETNET)
Paper
University-to-Work Transition and Work Placements: Evidence of Heterogeneous Pay Dynamics
Panagiotis Arsenis1, Miguel Flores2
1University of Surrey, United Kingdom; 2National College of Ireland, Ireland
Presenting Author: Arsenis, Panagiotis
While work placement is widely considered as a popular approach to fostering employability among higher education institutions, surprisingly little is known about the mechanisms through which placements can support students’ transition from university to the labour market. The aim of this study is to provide a dynamic understanding of students’ transition from work placement to the graduate labour market, with a focus on graduate earnings differentials due to heterogeneous job transitions. Using data collected from three waves of economics graduates of a UK university who did a work placement, this study examined three hypotheses: the gain of a pay premium for graduates who remained with their placement employer, also termed `foot-in-the-door' or employer-persistence effect; the persistence of low pay as students transition from work placement to graduate employment, in short, low-pay persistence effect; the pay progression as students transition from low-pay work placement to higher paid graduate employment, in short, low-pay stepping-stone effect. Our empirical investigation is underpinned by a conceptual model that builds on the movement capital framework, a conceptualisation of career mobility that is based on turnover literature. Specifically, we present a model that links the movement capital that students develop while on placement with their internal and external perceived employability. Correspondingly, these two types of perceived employability are linked to internal and external job transitions, which, in our context, translate into working for the placement or a different employer, respectively, upon graduation. Finally, the type of transition graduates make may lead to differential earnings (salaries).
Methodology, Methods, Research Instruments or Sources UsedOur data set consists of three cohorts (2016/17, 2017/18 and 2018/19) of economics graduates with work placement from a UK university. Students can either enrol in the standard three-year programme or the four-year programme with work placement (also known as ‘sandwich’ degree). Students opting for the work placement programme, typically gain full-time work experience with an organisation for 10-12 months, under a fixed-term and paid employment contract. We collected information on students’ demographic characteristics, academic achievement, participation in the work placement programme, extracurricular achievements and previous job experience (from CVs submitted in the context of the placement programme), and graduate earnings and job characteristics. We utilised two sources to collect these data: the University's administrative records and the annual graduate surveys conducted by the Higher Education Statistics Agency.
Our methodology consists of three specifications. We start with a Mincer log-earnings specification, that includes the log of real graduate earnings (salary) as a response variable and a dummy variable indicating whether the student completed a work placement and secured a graduate job with the placement employer or not as key explanatory variable. We also control for a wide set of factors that were outlined above. Next, we employ a quantile model to explore changes in our regressors across different points of the earnings distribution, with a particular interest in the top end (90th percentile) of the distribution, as this includes the most competitive graduate jobs. To study the low-pay persistence and low-pay stepping-stone effects, we first define three salary levels for the graduate earnings distribution as well as the placement earnings distribution. These are low, medium, and high salary level. Next, we use an ordered logit model to estimate the probability that a graduate’s salary is low, medium or high. Finally, we use this model to estimate transitions from the three placement salary levels to the three graduate salary levels, especially focusing on the low-low (low-pay persistence) and low-high combinations (low-pay stepping stone).
Conclusions, Expected Outcomes or FindingsWe find evidence confirming a foot-in-the-door effect. Graduates who transition to the labour market and remain with their placement employer (instead of transitioning to a different employer) earn on average a salary premium of 10.2%. Moreover, the premium increases to 12.4% at the top 10% of the salary distribution, meaning that the foot-in-the-door effect is stronger among highly paid graduates who remained with their placement employer. We also find evidence that supports the hypotheses of low-pay persistence and low-pay stepping-stone effects. In addition, there is heterogeneity in these effects, favouring those graduates who continued working for their placement employer.
References•Cai, L., Mavromaras, K., & Sloane, P. 2018. Low paid employment in Britain: Estimating state-dependence and stepping stone effects. Oxford Bulletin of Economics and Statistics, 80(2): 283-326.
•De Vos, A., Jacobs, S., & Verbruggen, M. 2021. Career transitions and employability. Journal of Vocational Behavior, 126, 103475.
•Delva, J., Forrier, A., & De Cuyper, N. 2021. Integrating agency and structure in employability: Bourdieu's theory of practice. Journal of Vocational Behavior, 127, 103579.
•Harari, M. B., McCombs, K., & Wiernik, M. 2021. Movement Capital, RAW model, or circumstances? A meta-analysis of perceived employability predictors. Journal of Vocational Behavior, 131, 103657.
•Fok, Y. K., Scutella, R., & Wilkings, R. 2015. The Low-Pay No-Pay Cycle: Are There Systematic Differences across Demographic Groups? Oxford Bulletin of Economics & Statistics, 77(6): 872-896.
•Forrier, A., Sels, L., & Stynen, D. 2009. Career mobility at the intersection between agent and structure: A conceptual model. Journal of Occupational and Organizational Psychology, 82: 739-759.
•Forrier, A., Verbruggen, M., & De Cuyper, N. 2015. Integrating different notions of employability in a dynamic chain: The relationship between job transitions, movement capital and perceived employability. Journal of Vocational Behavior, 89: 56-64.
•Fugate, M., Kinicki, A. J., & Ashforth, B.E. 2004. Employability: A psycho-social construct, its dimensions and applications. Journal of Vocational Behavior, 65, 1438.
•Inceoglu, I., Selenko, E., McDowall, A., & Schlachter, S. 2019. (How) Do work placement work? Scrutinizing the quantitative evidence for a theory-driven future research agenda. Journal of Vocational Behavior, 110(B): 317-337.
•Jackson, D., Riebe, L., & Macau, F. 2022. Determining factors in graduate recruitment and preparing students for success. Education + Training, 64(5): 681-699.
•Lindley, J., & McIntosh, S. 2015. Growth in within graduate wage inequality: The role of subjects, cognitive skill dispersion and occupational concentration. Labour Economics, 37: 101-11.
•Uhlendorff, A. 2006. From No Pay to Low Pay and Back Again? A Multi-State Model of Low Pay Dynamics. IZA, Discussion Paper No. 2482.
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