The Vocational Education System: How Can We Learn to Read Labor Market Signals?
The main goal of the secondary vocational education system is to fulfill the staffing needs of the Russian economy. The only way that we can effectively deliver on this objective is by ensuring there is a well-coordinated and stable system in place that allows vocational schools to cooperate with businesses. This article reviews how this cooperative relationship has changed over time, from the Soviet centrally planned model to the advent of market mechanisms. The authors pay particular attention to the specific features that distinguish the Russian labor market and the nature of youth employment in Russia, and they also examine the particular means and models whereby the vocational education system is able to “read signals” that emanate from the labor market and to quickly respond to these signals.
The article’s findings may be of interest to administrators who work in the secondary vocational education system, experts as well as to anyone who takes an interest in the relationship between the secondary vocational educational system and the labor market.
Materials was published based on the results of the VI International Scientific and Practical Conference “Sustainable Development: Society and Economics”, held as part of the International Labor Forum - 2019, organized by the Government of St. Petersburg and St. Petersburg State University on February 28 - March 01, 2019. The collection of materials is intended for students, bachelors, undergraduates, graduate students and teachers of economic specialties of universities, scientific and practical workers.
Abstract: The paper analyses the role of vocational education in formation of professional trajectories of Russian employed population during the period 2005-2015. Based on longitudinal data we explore the differences between career paths of workers that had the experience of vocational training and workers without such experience. We contribute the debate regarding vocational training and its role in innovation and economic development utilizing methodology of sequence analysis and Markov chains with long memory (mixture transition distribution models (MTD)). MTD models suggest the analysis of categorical data sequences instead of quantitative data that is standard for this kind of research. Such methodological approach allows not only estimating casual effects of participation in vocational education programs on the wage level, but exploring how vocational training influences the whole career path. Our findings suggest that those workers who participate in vocational training have lower probability of different negative events in their careers including job loss. Moreover, mixture transitions distribution models suggest that for such workers the current career status determined by longer history of previous career events than for those employees that had not any experience of participation in vocational education programs. These results give the evidence that vocational education is important factor of success on the labour market, providing greater flexibility of career paths that is crucial in innovation development of the labour market and economy as a whole. Findings of the study also have important policy implications. Importance of vocational training on individual level suggests that investment in vocational education on societal level will bring positive returns. This kind of education provides the flexibility of individuals on the labour market, through vocational training workers obtain new skills and knowledge that allows them utilizing new technologies and innovations. Development of vocational education may be considered as policy-making instrument that can generate positive economic outcomes.
This paper analyzes the role of education in economic growth with special focus on countries with high participation in tertiary education. The practical challenge that this conceptual paper is trying to address is that global economic growth is decreasing in the last decades – especially in developed countries.
Combining work and study by students of Russian higher education institutions is studied from the viewpoint of how university quality and the set of financial, academic, social and demographic factors affect probability of student employment, and what motivates students to enter the labor market. The paper is based on the results of a 2013 survey among graduate students of Russian universities on their educational and career strategies conducted as part of the Monitoring of Education Markets and Organizations project. Data was analyzed using descriptive analysis and regression analysis: influence of factors was assessed through a logistic binary choice model (logit regression). It is shown that the most positive effect on probability of combining work and study is given by such factors as learning in a leading university, studying a Master’s degree, specializing in areas of study connected with foreign languages, mathematics, computer programming, design, architecture, and culturology. Receiving no financial support from family, studying on a state-funded basis, and being male also increase probability of student employment significantly. The research performed has allowed to suggest hypothetically that combining work and study is most often caused by desire to gain work experience, with more talented students working more often, obviously. By doing so, students try to get to look more productive, which may later bring an economic profit to them in the labor market. These hypotheses require further examination.
This article is dedicated to studying the condition and characteristics of Russian youths’ behavior in the labor market during economic crisis. The analysis is based on data from the Russia Longitudinal Monitoring Survey — Higher School of Economics (RLMS-HSE). It is revealed that the negative aftermath of the economic crisis, as well as expectations for the further decline of the economic situation, has undermined youths’ confidence in the labor market. They find themselves in an especially vulnerable position when enterprises shut down or in the case of job cuts. Opportunities for finding a job in the field of secondary employment have narrowed out, and there has been an increase in the amount of young people who are willing to work without signing an employment contract, who are ready to accept unfavorable working conditions. There is an acute sensation of incongruity between the demand for qualified workforce and those specialties which young people receive at higher educational facilities and secondary schools. The crisis has not only exacerbated many of the problems which young people face in the labor market, but it also has stimulated growth in the activity of young Russians when it comes to overcoming emerging troubles, not to mention it increased their interest in utilizing irregular means of material provision.
The paper introduces the methods of assessing the effects of social assistance on work incentives, using representative Rosstat survey data as illustration. It also demonstrates the key steps of testing the hypothesis of the social benefits effect on work incentives, as well as the need for conducting multi-factor analysis coupled with impact evaluation methods. The key finding from descriptive analysis is that an average household that has recipients of social benefits among its members cannot rely on social benefits as a significant source of means of subsistence, therefore social transfers do not produce a sizeable effect on work behavior. Nevertheless, the authors propose a hypothesis that there are certain groups of social transfers beneficiaries whose work behavior may be strongly affected by social transfers. Firstly, this refers to recipients of social transfers, the size of which is comparable to the anticipated wage size. In such cases, social transfers can produce a negative employment effect. Secondly, this could refer to recipients, whose eligibility to social transfers is related to their belonging to a certain professional group. In this case, in all likelihood, social transfers create economic incentives to stay in these professional groups, reducing labor mobility. The testing and analysis of these hypothesis will be presented in forthcoming papers by the authors.
In this article, the authors examine the changes taking place in the social and labor structure of society, against the backdrop of the processes of mass informatization, globalization and the formation of network structures. The aim of the work is to consider a new trend in the labor market - Uberization, which is characterized by the establishment of horizontal links that replace the vertical hierarchy, when the link between the manufacturer and the consumer becomes an automated system. Thus, Uberization is a new stage in the formation of network structures in the labor market, described earlier by D. Pink and R. Florida. In these conditions, self-employment as a form of labor activity becomes especially important. The article reveals the main prerequisites for the emergence of Uberization and its characteristics.
Institutions affect investment decisions, including investments in human capital. Hence institutions are relevant for the allocation of talent. Good market-supporting institutions attract talent to productive value-creating activities, whereas poor ones raise the appeal of rent-seeking. We propose a theoretical model that predicts that more talented individuals are particularly sensitive in their career choices to the quality of institutions, and test these predictions on a sample of around 95 countries of the world. We find a strong positive association between the quality of institutions and graduation of college and university students in science, and an even stronger negative correlation with graduation in law. Our findings are robust to various specifications of empirical models, including smaller samples of former colonies and transition countries. The quality of human capital makes the distinction between educational choices under strong and weak institutions particularly sharp. We show that the allocation of talent is an important link between institutions and growth.