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Initial vocational education
and training in Russia –
new challenges
Nina Vishnevskaya
32nd Annual Conference of IWPLMS,
11-13 July 2011
Motivation
and objectives
• After the start of economic reforms the system of
vocational training, formed in the USSR, collapsed.
• The objective of this paper is to analyze characteristic
features of the comprehensive system of initial
vocational education and training (IVET) in Russia and
to evaluate its advantages and disadvantages.
• The main question – does Russian IVET corresponds
to the needs of the market economy?
Data
• The Russian Longitudinal Monitoring Survey.
•
RLMS is the only representative panel household survey in
Russia,
•
The RLMS was first launched in 1994 and is conducted
•
annually (except 1997 and 1999).
•
Its core questionnaires (for individuals, households,
•
and community-related data) include
•
questions on educational characteristics of individuals
• Survey “Monitoring of Education” conducted by Higher School of
Economics and the Ministry of Education of RF
• Russian Agency on Statistics
IVET in the socialist economy
• IVET was one of the educational streams with close involvement of
the state and social partners.
• Large enterprises actively participated in the organization of
training places.
• Professional education was combined with workplace training,
providing firm-specific skills.
• Education at all levels was free.
• The problem of graduates employment actually did not exist. High
proportion of industrial production coupled with low productivity
required a constant inflow of labour.
• The State restricted artificially access to tertiary education, and that
also supported the demand for training places in vocational
education.
• The main difference from German dual system was the possibility
of upward educational mobility.
With the start of the economic reform
• a considerable part of human capital inherited from
socialist era, has undergone partial or complete erosion;
• a severe shortage of some categories of labour was
accompanied by an excess of others;
• many workers had to change not just a job, but the
profession and employment sector;
• during 1991-1998, over 40% of Russian workers switched
the job-place, This process was described as “a great
reallocation of human capital” (Sabirianova, 2001).
• Formal education system was ill-prepared to function in a
market environment and entered a period of protracted
organizational and financial crisis.
Institutional characteristics of comprehensive
IVET system in Russia (1)
• Academic schools and IVET system function separately.
• There are three types of IVET institutions.
•
1. Professional training is combined with
•
academic education (78%);
•
2. Professional education and training is not combined
•
with academic education (10%);
•
3. Professional education and training after receiving
•
upper secondary general education (12%)
• Most participants of IVET enter professional schools after
graduating from lower secondary school.
Institutional characteristics of comprehensive
IVET system in Russia (2)
• The regional governments became the major sponsors of
IVET system. Their share in financing professional
establishments exceeds 80 per cent.
• Only 0,8% of all professional schools belong to private
companies.
• The curricula is approved by the Ministry of education
• The education normally lasts three years
• Very important feature of Russian IVET system - there is
no obstacles for entering the higher levels of education,
including university.
The IVET system turned out in a deep and
protracted crisis
• From the supply side. Enterprises declined to
participate in IVET. This means that participants of IVET
stopped receive on-the job-training.
• The quality of education in IVET establishments
deteriorated significantly.
• From the demand side. The share of youth cohorts
enter professional programmes substantively decreased.
Young people increased sharply the demand for tertiary
education.
Structure of expenditures on different
levels of education
The role of enterprises in IVET system
•
•
According to Monitoring of Education, 37-46% of enterprises experienced shortage
of skilled workers (2007). Even in the crisis 2009 33% of enterprises considered
shortage of workers as the main obstacle to expansion of production
23% of enterprises do not hire IVET graduates, of those who hires 45% are not
satisfied with the quality of education (Monitoring of education, 2009).
Why firms do not train?
Some of the enterprises declined to fund and organize training places because of
difficult financial position
• Very high turnover rate – -60%, in 2009 – fell to 50%
• Compulsory military service – halve of IVET graduates enter military service
Many companies which are willing to allocate financial resources for this purpose,
face the “poaching problem”.
• As the result, the share of enterprises participating in IVET significantly
decreased.
Why Russian enterprises can’t solve the
“poaching problem”?
• The characteristic feature of Russian bargaining system is the
absence of effective mechanism of economy-wide and interindustry coordination.
• The absence of an effective mechanism of inter-industry
coordination leads to large differentiation in wages between
different branches.
• Specific wage-setting mechanism, strong dependence of wages on
firm’s performance , low share of tariff in the total wage leads to
high differentiation in earnings between workers with similar
characteristics.
• Employers’ organizations don’t have enough negotiating power.
Only 40 per cent of LM enterprises are members of employers’
organizations. Participation in association is often a formality.
Relative wages by industries, 2009, %
What industries establish training centers
for skilled workers?
• Industries in which wages are much higher than the
average. These are primarily the extractive branches:
oil and gas, iron and steel, ferrous metals.
• Training of young workers can afford industries, which
can easily shift increased costs on consumers. This
applies, for example, to retail companies.
• The major role of state professional schools became
to provide social support to disadvantaged youth
Quality of training
• The crisis of IVET stems from several reasons, one of
the most important – the worsening quality of
education.
• The measurement of quality of education is a complex
task. The concept of “quality” covers various aspects –
from motivation to training, from discipline to
innovation.
• Evaluating the integral quality different people may
attach different weights to different components, and
generally keep in mind not the same thing [Green,
Machin, Wilkinson 1998].
• We have to operate indirect indicators
Assessment of professional knowledge and
experience received during the education,
2009, %
Primary
Lower
ISCED
education secondary
3A
education Academ
ic
ISCED 3C
ISCED 4
(IVET
(IVET
without
with full
full
general
general
education
education)
)
ISCED
5B
ISCED
5A
Very helpful
Fairly useful
8,3
33,3
18,1
49,8
27,8
48,6
33,0
42,3
29,2
43,5
36,8
42,8
50,1
38,5
Not very useful
25,0
14,5
11,1
9,5
11,9
9,9
6,5
Almost useless
8,3
6,3
5,8
6,0
5,5
4,7
2,5
25,0
11,1
6,7
9,2
9,9
5,8
2,4
100
100
100
100
100
100
100
2,9
3,6
3,9
3,8
3,8
4,0
4,3
Completely
useless
Total
The average
scores
The use of knowledge and experience
received during training, by educational
attainment, 2009, %
Lower
secondary
education
ISCED 3A
ISCED 3C
ISCED 4
(IVET
(IVET
without
with full
full
general
general
education)
education)
ISCED 5B
ISCED 5A
Make full use
39,5
48,8
48,4
46,2
53,6
57,8
Largely use
27,7
29,7
30
27,3
26,7
29,2
Use to a small extent
14,9
13,1
8,3
12,7
11,1
9,6
Do not use at all
17,9
8,5
13,4
13,8
8,5
3,5
Total
100
100
100
100
100
100
The average scores
64
74,3
72,9
69,8
76,4
82
Post-diploma mobility of IVET
students
Tertiary and IVET students as % of school
graduates, 1990, 2009, %
Dynamics of number of students at
different educational establishments
Accumulated years of education, Russian total and
employed population, 1995-2009 RLMS
Accumulated years of education, selected countries, 2000
(Barro and Lee, 2001, Worldbank)
Share of population with Type A+B tertiary education and
GDP per capita in selected countries, 2008
Share of population with Type A tertiary education
and GDP per capita in selected countries, 2008
The average number of accumulated years
of education
• The dynamics of the average number of accumulated years of
education showed a steady upward trend. Since the mid-1990s, it
increased by more than one year.
• How Russian human capital looks in light of international
comparisons?
• The educational level of its population was much higher than in other
countries, belongs to the same economic group. If we look at the
average number of years of schooling, Russia is ahead not only of
other transition and BRIC countries, but also ahead of the most
developed countries.
• For the population aged 25 and over the average number of
accumulated years of education Russia outstripped Germany by 0.7
years, Japan – by 0.8 years, the UK – by 1.1 years, France – by 2.1
years.
Educational attainment of the Russian adult
population
• Even more striking that in a country with such a relatively low level of
per capita GDP as Russia over half the population - 57% - had a
tertiary education. This was 13 percentage points higher than in
Canada, and several times higher than in other post-socialist countries
where this indicator did not exceed 15%
• This is largely unexpected "primacy" of Russia provides ultra-high
proportion of persons with type B tertiary education of type B.
However, the share of persons with tertiary type A education Russia
belongs to a group of world leaders. Thus, among the countries of the
OECD sample, with the result of 21% she shared a ninth-tenth place
with Japan. Countries with such a paradoxical combination of
indicators of GDP per capita and coverage of tertiary education
worldwide practice hardly knows. We can assume that the educational
potential of Russia creates enough opportunities for the development
of the formation of an economy based on knowledge.
Educational attainment, adult population (25-64),
2005
At least upper
secondary
education
Developed
countries
France
Germany
Japan
United Kingdom
USA
Transition
economies
Czech Republic
Hungary
Poland
RUSSIA
64,9
83,4
83,9
65,1
87,5
Population
Employed
Tertiary education
At least upper Tertiary
secondary
education
Type В
Type А A+B
education
9,2
9,9
16,5
8,7
9,0
86,4
74,1
48,3
89,4
36,1
14,2
14,1
20,9
19,3
29,4
23,4
24,0
37,4
28,0
38,4
71,0
88,0
85,7
74,2
90,4
26,9
28,6
39,8
33,7
42,2
11,7
15,3
14,2
12,0
15,4
14,2
91,8
84,9
62,4
14,3
19,6
22,3
20,8
56,9
93,7
63,8
How companies address the skilled
workers’ shortage?
• Migration. The stock of migrant workers increased from 0,3%
in 2003 to 3,1% in 2010. Competitin with Russian workers
• Hiring of workers with higher qualifications ( 49% of people
with Type B education and 15% with type A tertiary education
work as skilled- and semiskilled workers)
• Retraining of companies personnel. Halve of enterprises
organized retraining for their workers, but educational
coverage (5%) and training period was very short (3 weeks).
Conclusions
 Russian IVET system is in full collapse
 The goverment, employers and their organisations
do very little to improve the situation
 It is clear that the German dual system of IVET has
no future in Russia
 The future of initial professional education and
training in Russia???