Education, labour markets and social policies in transition countries

1
Education, labour markets and social policies in
transition countries

• Irena Kogan
• University of Bamberg and MZES, University of
  Mannheim

2
Project Education Systems and Labour Markets in
Central and Eastern Europe

• General aims
• Description of the job entry
• processes in transition countries
• Better understanding of the
• role of institutions in this process
• Focus on education, labour
• markets and welfare regimes

EE
LV
LT
PL
CZ
SK
HU
RO
SI
BG
3
Education system
4
Example Education system of the Czech republic
Source Strakova 2008
5
Basic level of education Percentage of people
aged 18-24 not in education with only
lower-secondary education in 2002
Source Eurostat 2003
6
Example Education system of the Czech republic
Source Strakova 2008
7
Stratification

• The extent to which the pupils are sorted early
  on in their school careers into tracks of
  different curricula, with different scholastic
  demands and with different opportunities and
  barriers for progression up to the high end of
  the education ladder (Allmendinger 1989)
• Example Germany, early selection (at age of 10)
  to three types of schools with little mobility
  between them

8
Stratification at the secondary level
Source Kogan 2008
9
Example Education system of the Czech republic
Source Strakova 2008
10
Horizontal Dimension

• The relative advanatages of systems organised to
  provide largely general education versus those
  equipping school leavers with vocational skills
  (Allmendinger 1989 Kerckhoff 1996, 2000 Shavit
  und Müller 1998, 2000)
• Operationalisation
• Proportion of students in general vs. vocational
  schools at the secondary level
• Proportion of students in vocational (technical)
  schools at the secondary level ending with Matura
  (a school-leaving certificate allowing access to
  tertiary education)

11
Proportion of students in general vs. vocational
schools at the secondary level
Source UNICEF 2007
12
Educational track and type of the school leaving
certificate, year 1998
General
Vocational with Matura
Vocational without Matura
Source Kogan 2008
13
Organisation of vocational training
(Allmendinger 1989 Kerckhoff 2000 Shavit und
Müller 1998, 2000 Ryan 2001) School-based vs. A
combination of schooling and vocational training
at enterprises (dual system)
Source Kogan 2008
14
Example Education system of the Czech republic
Source Strakova 2008
15
Educational expansion at the tertiary level
enrollment rates
Source UNICEF 2007
16
Type of the institution at the tertiary level
University
Non-university sector
Source Eurostat 2008
17
Summary

• HU, CZ, SK, SI und (PL)
• Influence of the German education system
• Introduction of selective grammar schools, early
  selection (apart of SI and PL)
• Relatively low tertiary participation in CZ and
  SK, but higher in SI, PL
• 2. EE, LT, LV
• Influence of the German tradition (vocational
  components) and Nordic or Soviet system
  (compulsory education)
• High participation at the tertiary level
• 3. RO und BG
• Late educational expansion, particularly at the
  tertiary level
• Combination of the general and vocational tracks

18
Labour markets and social policies
19
Trends in GDP in CEE countries
Note GDP per capita, PPP (in constant 2000
international ) Source World Bank (2007b),
Schneider (2006 Table 6.5), own calculations
20
Flexible employment forms in 2006
Note Temporary work (TW), part-time work (PT)
and self-employment (SE) as a percentage of the
total number of employees aged 15-64. Source
Eurostat (2008).
21
Employment protection legislation
Source Figures for EU15 (average without
Luxemburg), Poland, Czech Republic, Slovakia, and
Hungary from OECD (2004 Table 2 A2.4 measures
situation in 2003) for Estonia, Slovenia,
Lithuania, and Bulgaria from Tonin (2005 Table
1 measures situation in 2001-2004) for Latvia
from Eamets Masso (2005 Table 1 measures
situation in 2002) for Romania from Micevska
(2004 Table A1.2 measures situation in 2003).
22
Privatisation forms

• Estonia, Hungary primarily direct sale of large
  and medium-sized companies to foreign investors
• Czech Republic, Slovakia and Lithuania mass
  privatisation through distribution of vouchers to
  the population

23
Weighted privatisation index and private sector
share in GDP in CEE countries, 1990-2006
Notes 1 Index represents unweighted average of
EBRD Index on large scale privatisation and EBRD
Index on small scale privatisation. Both indices
range from 1.0 (little private ownership) to 4.5
(standards and performance typical of advanced
industrial economies). 2 The underlying concept
of private sector includes private registered
companies, as well as private entities engaged in
informal activity if reliable information on
informal activity is available. Source EBRD
(2007).
24
Employment by sector in CEE countries
Note Different start and end years due to
limited data availability or comparability. Source
Latvian data for first year from Eurostat
(2008) and for the rest of the countries from ILO
(2008) data for the last year from Eurostat
(2008).
25
Labour force participation rate by gender,
1990-2006
Change
Change
Note Age group is 15-64. Source ILO (2008)
26
Labour force participation rate () by age
cohort, 1990-2006
Source ILO (2008)
27
Unemployment rates in 2006
Source Eurostat (2008)
28
Unemployment rates by educational level in 2006
Notes Educational level is understood to be the
highest educational level achieved by an
individual. Figures are for persons 15-64 years
old. Source Eurostat (2008).
29
Distribution of income and unemployment risks
ISCED0-2 /
ISCED5-6 vs.
ISCED5-6
ISCED0-2
Gini
unemploymen
Dispersion of
income ratio difference
coefficient
t rate ratio
regional GDP
2006
2006
2006
2004
EE
33
0.67
3.3
43.5
LV
39
1.34
4.9
52.9
LT
35
1.17
3.2
22.2
PL
33
1.35
3.9
29.7
CZ
25
0.71
11.9
24.9
SK
28
0.52
15.3
29.1
HU
33
1.04
5.6
37.6
SI
24
0.77
2.5
21.6
RO
33

2.4
27.4
BG
24

5.8
29.4
CEE-10
31
0.95
5.9
32.7
EU-14
29
0.58
3.3
23.3
GR
34
0.9
1.1
26.9
PT
38
1.52
1.1
27.3
Notes See footnotes 11 and 12. Ratio of
unemployment rates Value given for 2001 for NL
is from 2000 values from 2006 are from 2004 for
EE and 2005 for LV and LT sample of 18-64 year
olds. Dispersion of regional GDP Values in 1995
are from 2000 for PL, GR and 1998 for RO
averages exclude RO, PL, GR. Dispersion of
regional GDP at NUTS level 3 is measured by the
sum of the absolute differences between regional
and national GDP per inhabitant, weighted with
the share of population and expressed in percent
of the national GDP per inhabitant Source
Eurostat (2008a), own calculations
30
Poverty rates and long-term unemployment
Notes Absolute poverty rates in PPP, data for
EE, LV, LT, PL and RO from 2002, BG from 2003
(World Bank, 2005). Absolute poverty rates for CZ
and SK from 1997, SI from 1998 (World Bank,
2000). Relative poverty rates indicate the share
of persons with an equivalised disposable income,
before/after social transfers, below 60 of the
national median equivalised disposable income
after social transfers. Pensions are counted as
income before transfers and not as social
transfers. Long-term unemployed are the share of
unemployed who have been unemployed 12 months or
more (individuals aged 15 to 39 years). Source
Absolute poverty rates from World Bank (2000,
2005), other indicators from Eurostat (2008a)
own calculations
31
Social protection expenditure in 2005
Notes 1Social protection expenditure per
inhabitant in PPS as percentage of unweighted
EU-14 average. All values for PT from 2004. See
Eurostat (2008b) for detailed information on
accounting of expenditure and revenue items.
Receipts of social protection schemes comprise
social contributions, general government
contributions, and other receipts (not shown).
Employers' social contributions costs incurred
by employers to secure entitlement to social
benefits for their employees, former employees
and their dependants values in 2000 are from
2002 for BG, from 2001 for IT values in 2005 are
from 2004 for AT, 2003 for GR data for Ireland
was unavailable. Source Eurostat (2008a), own
calculations
32
Expenditure on passive and active labour market
policies as a percentage of GDP, 2005
Source Eurostat (2008a), own calculations.
33
Expenditure on different types of active labour
market policies as percentage of GDP, 2005
Note Expenditure data on labour market services
is missing for PL. Source Eurostat (2008a), own
calculations
34
Project Education Systems and Labour Markets in
Central and Eastern Europe
Stage 2 of the project Detailed analyses of
school leaver surveys
Estonia
Russia
Poland
Eastern Germany
Czech rep.
Ukraine
Hungary
Slovenia
Serbia
Croatia
35
Comparative framework

• Focus on detailed characteristics of education
  (e.g. difference between public and private, paid
  and free, full-time and part-time, fields of
  study)
• At the secondary level Eastern Germany, Czech
  republic, Croatia, Serbia, Poland
• At the tertiary level Poland, Serbia and Ukraine
• Focus on variation of educational effects across
  school-leaver cohorts Slovenia, Hungary, Russia
  and Estonia

36
Analyses

• Selectivity to education (by socio-economic
  origin, gender)
• Time elapsed until the first significant
  employment
• Quality of the first significant employment
• Stability (duration) of the first significant
  employment with exit routes to other employment,
  unemployment, inactivity