Chapter 5

The focus of technical and vocational provision in England: a comparative study with the Austrian education system

Sean Starr

Introduction

The education sector continues to be linked by policy-makers to social mobility, particularly in its role in providing the training and skills associated with workforce development and economic growth (Lubienski, 2009). In this respect, legislators look to schools to cultivate and innovate to find ways of meeting these demands. Better strategies for educational initiatives aimed at educating communities and students underserved or even essentially excluded by national education systems, not only to draw on these forgotten groups of human capital, but also as a matter of social justice (Johanningmeier, 2009), for vulnerable groups. Such innovations within the education sector can improve outcomes, often without utilising greater levels of resources (Gorard, 2010).

Policy-makers are understandably interested in how best to encourage innovations in education. While there are a number of policy strategies available for pursuing these goals, one of the more popular approaches in recent years has been to leverage market-style mechanisms, with the introduction of a variety of educational provision in the English school sector. One area that is currently being re-developed in England is the apprenticeship dimension .

The chapter will review the re-introduction of apprenticships in England, with a focus on education into employment. This will be achieved through placing the English educational system in a comparative context with the Austrian educational system. The Austrian system was chosen due to its having over 40 years of very diverse educational provision, including a significant vocational and apprenticeship programme. The features and characteristics of the two systems are described and how the two systems ensure widening access supporting the labour markets will be investigated.

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Context of technical, vocational education and training

There has been an incremental move in many countries towards more comprehensive school systems where an increasing proportion of students are given the opportunity to pursue education in more academically oriented schools (Slaughter and Rhoades, 2009). Technical and vocational education and training (TVET) has been neglected and received limited attention compared to other parts of the education system and is often regarded as inferior (Wolf, 2011), seen as having lower status or as a second choice after professional education (OECD, 2011), regardless of the student’s interests, passion or abilities. Many people therefore dismiss promising and meaningful career paths in areas where employment demand is greater, simply because of the stigma attached to technical and vocational occupations.

Four decades ago, direct migration from compulsory schooling to the working environment was the norm for many young people in England. However, since the collapse of the youth labour market in the late 1970s, school-to-work transitions have become extended (Rikowski, 2001), with the current leaving age for compulsory education or training in England being 18. By increasing the compulsory element of education it may support skill formation for societal, organizational and individual needs is a global concern (Hiebert and Borgen, 2002). In this context, Powell and Solga (2010:705) suggest that for policy-makers “one of the crucial challenges is the question of whether to invest in general post-secondary education or in specific vocational training”. These changes were theorised as a move from Fordism to Post-Fordism (Brown and Lauder, 1997).

Despite what appears to be a growing interest in TVET in England, defining what it means is not straightforward and reflects a wider problem of “shifting and often messy conceptualisations” (Avis, 2012:4) of TVET. TVET is a broad concept, usually defined at European level as preparing learners for jobs related to a specific trade, occupation or vocation (Colley et al., 2003). Therefore, TVET may serve as an entry point to employment or further/higher education and is described as the combined process of education and training, recognizing the common objective of employment as its immediate goal.

Many education systems continue to be directed primarily towards preparation for university education, even though the majority of students move directly into the labour force (Heinz et al., 1998).

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Cable adds:

For many individuals and for the country there may be more to be gained from vocational education [....] which is in many respects, the area where we will tackle some of our key deficits as a country in intermediate skills. Apprenticeships rather than degree courses? [....] apprenticeships are delivering vocational education every bit as valuable for their students and the wider economy as the programmes provided by universities.

(Cable, 2010 A new era for universities -Oral statement to Parliament)

In England, there is now an understanding that dualism between academic and vocational learning is required to meet the demands of society, as Hayes (2011:6) suggests:

Little makes more difference to people’s lives than the empowerment they receive from education. But for those young people whose aptitudes and talents are practical, expectations are too often limited and opportunities restricted. For far too long vocational learning has been seen as the poor relation of academic learning.

Discussion

What evidence is there that some countries are trying to bring general and vocational education closer together in at least one way? What is the value in doing this?

A brief comparison of the main features and characteristics of the English and Austrian educational systems

Austria and England have widely differing approaches to education and, as a result, very different systems. The education systems of Austria, Germany and Switzerland can be considered structurally similar (Pilz, 2012) and highly selective. Austria follows a coordinated market economy, renowned for its extensive dual apprenticeship training systems at upper secondary level (Hall and Soskice, 2001). Secondary school systems that are essentially selective, contrast markedly with England’s, which is largely comprehensive. The greater prevalence of selection by schools provides one explanation for why social segregation is, currently, higher in those countries than in England (Jenkins et al., 2006).

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Austria belongs to the collective skill system cluster which is where initial vocational training is collectively organised through the cooperation of employer organisations, the state as well as intermediary associations such as employers’ associations and trade unions (Busemeyer and Trampusch, 2012). Austria, Germany and Switzerland are also characterised by an institutional divide between the vocational education and training (VET) system and the academic system (Lasonen and Manning, 2001). This division between VET and academic, called the ‘educational schism’ (Baethge, 2006, in Graf, 2015), has become increasingly contested due to a complex set of interrelated socioeconomic factors resulting in an increasing demand for higher skills within the Austrian system, while the English educational rhetoric is based on the assumption that the academic system has greatest educational currency (Chankseliani et al., 2016).

Discussion:

What evidence, if any, is there that technical and vocational schools are more suitable to those of lower ability?

The majority of English students leave primary phase education at age 12 and enter secondary until they are 16, at which point they may remain at their current provider (depending on provision) or move to a college (technical/sixth form). During the transition between primary and secondary schooling, there is the possibility for selection to grammar schools in England, but the proportion of students who attend is only five % of the student population (Bolton, 2016), compared to 34 % in 2010 in Austria (Herzog-Punzenberger et al., 2012), who attend an academic school (allgemeinbildende höhere Schule - AHS).

Austrian secondary education is divided into a junior and a senior level: the Unterstufe (for children aged 10-14) and the Oberstufe (14-18/19). Schools are also organised into general and academic secondary schools, with upper and lower secondary education levels. Those of average ability or below attend general schools called Hauptschule (general secondary school). If a student has reached a certain level of achievement at a Hauptschule they may be transferred directly to AHS. Since September 2016, a new type of school has been introduced called ‘new secondary school’ (Neue Mittelschule - NMS). NMS is a comprehensive school for 10-14 year-olds and offers a wide range of learning programmes. In principle the curriculum of the lower cycle of AHS applies; students obtain individual support and tailored instruction. Hauptschule are being phased out and converted to NMS.

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Those of higher academic ability attend an AHS. After successfully completing the four-year junior secondary school, children transfer to upper secondary education. Given that schools in Austria are compulsory for nine years, students can finish their secondary education with the ninth grade (age 14); however, there is an expectation that they should enrol at a vocational school combined with an apprenticeship. The Oberstufe covers general secondary education, and secondary vocational education. The school system is divided into a general education branch and a vocational branch. Therefore, children either attend an academic secondary school upper level (AHS-Oberstufe) or a School for Intermediate Vocational Education (berufsbildende mittlere), a College for Higher Vocational Education (höhere Schule), a Pre-Vocational School (Polytechnische Schule), or part time schools.

Though the English system is not as fluid, in terms of transition and transfer opportunities within secondary school (particularly from the age of 12 until 14), there are eight different school types that make up the English secondary education system: independent schools, grammar schools, academy schools (which can be subdivided into sponsored academy, converted academy, Free School, UTC or studio school), city technology colleges (CTCs), voluntary aided schools, foundation schools, voluntary controlled schools and comprehensive schools. Each school type is characterised by a unique set of features regarding their autonomy and governance, though the curriculum offer is often very similar in many of these schools. In England, end of primary school assessments are used to support any identification of progress, with movement based on ‘choice’ rather than academic ability, whereas in Austrian schools, assessments between primary and lower secondary phase/lower secondary and upper secondary determine the nature of school attended.

Curriculum offer

The curriculum offer in England is delivered through the national curriculum and supported by governmental accountability measures which focus on academic subjects. At the end of secondary education the same public academic examinations are taken in all school types, if appropriate. At the age of 16 all students have the opportunity to take GCSE examinations (the General Certification of Secondary Education). If the student decides to pursue academic education beyond this point, this involves studying for A-level exams. All secondary and further education providers may also look at alternative curriculum pathways and offer vocational qualifications. While most TVET is through an integrated curriculum, such

5 curricula may be more demanding to teach and their success may depend on adequate training and preparation for teachers and trainers (Viceník, 2000).

The Austrian education system is run by the individual federal states and therefore there is no national curriculum standard as such. Intermediate and upper secondary technical and vocational schools/colleges offer pupils the possibility of choosing between different study courses. Within certain limits, providers can also determine the pupil numbers required for creating new classes and dividing existing ones. The contents of the curriculum are different for schools, this is defined as dualism (Graf, 2013) or hybridisation (Powell and Solga, 2010). Neverthless, all Austrian states abide by uniform requirements for the school leaving examination (Abitur) for AHS students, and recognize the credentials certifying completion of school. While the Austrian system offers a standardised, competency-based matriculation examination or matriculation (Matura) and diploma examination, within the academic schools, the final examination Reifezeugnis or Reifeprüfungszeugnis (final examination certificate) grants access to all forms of higher education, while the vocational/apprenticeship routes lead to a certificate which provides the apprentice with access to two different vocational careers. On the one hand, it is a prerequisite for the admission to the Master Craftsman Exam and for qualification tests, and on the other hand it gives access to higher education.

Discussion:

What would be key features of a curriculum that ensures students are having doors opened?

Widening Access and youth unemployment

Guidance and support needs to be of a high quality to ensure efficiency in the labour market signalling back into education and training, and to ensuring pathways are well-matched to learners’ attainments and aspirations. Failure in the system could possibly be attributed to early school leaving rates. These rates can be linked to unemployment, social exclusion and poverty. The early school leaving rate, from European Commission (2015) data in Austria remains well below the EU average (7.3 % compared to 11 % in 2015) and below the Europe 2020 national target of 9.5 %. The rate has been falling continuously over recent years, from

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10 % in 2006. The UK has a slightly different picture with an early school leaving rate of 10.8 % in 2015, which is a reduction from 14.8 % in 2010.

With youth unemployment currently at a record high, the need to create routes into employment for school-leavers is of paramount importance. Being unemployed when young leads to a higher likelihood of long-term impact in later life in terms of subsequent lower pay, higher unemployment, reduced life chances (Bell and Blanchflower, 2011; Mroz and Savage, 2001; Strandh et al., 2014), lower life time earnings (Buckely, 2015) and greater mental health problems in late life (McQuaid, 2014).

In England youth unemployment increased from 14 % in 2007, 22 % in 2011 this has now nearly back to levels found in 2007 with 15 % in 2015 (Eurostat, 2016), Other northern European economies, including Austria, the Netherlands and Germany have proven more resilient, and have the lowest rates of youth unemployment. In Austria youth unemployment was, around 9 % in 2007, 8 % 2011 with a slight increase to 11 % in 2015 (ibid).

The low rates of youth unemployment in Austria highlight the importance of how the dual education system interacts with the world of work, and the institutional support that young people receive to make the transition between the two (OECD 2011). In contrast, apprenticeships in England are seen as an “either/or” choice compared with completing a degree (Lodovici et al., 2013). This is partly because governments have prioritised access to university as part of their social mobility strategies therefore there is a large pool of university graduates from which to recruit (Wolf, 2011). Apprenticeships could be considered the preferred tool for ensuring leaving those without a degree are not being left behind and forming part of national systems of education and training (Fuller and Unwin 2010).

In Austira 40 % of school-leavers enter apprenticeship training upon completion of compulsory education at age 15 (Nindl, 2012), while in England, only 25 % of 16- to 18- year-olds were in apprenticeships (Delebarre, 2016). For Austria this number has been stable since the 1950s (Deissinger, 2002) while this has steadily reduced in England from 2010 (Delebarre, 2016). Furthermore, Austrian apprentices have an estimated completion rate of 85 % taking account of drop-out and failure of the final examination (IBW, 2009). In 2008/09 the overall success rate (completion of all Framework Elements) for England was 72.2 % (Steedman, 2010.) As a result, policymakers across Europe increasingly stress the importance of high quality vocational education (Lanning and Rudiger, 2012).

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Apprenticeships and the Labour Market

A key ‘policy error’ in England was the assumption that qualifications are the main change instrument (Oates, 2013) with the same qualifications can be used across different categories; that qualifications can be used as the ‘building blocks’ of the curriculum rather than specific well-designed curricula being put in place which then use appropriate qualifications for certification of key elements (Machin and Vignoles, 2006). This is not evident in some other high-performing systems (Tinklin et al., 2004), including Austria. As such, off-job provision is in a secondary role, but provides wider learning which could otherwise not be delivered through workplace learning. The State has an interest in this wider learning (which provides enhanced labour mobility and human capital).

Apprenticeships play a vital part in addressing, youth unemployment, the skills challenge and continue to facilitate the transition from school to work, leading to higher employment probabilities than equivalent full-time schooling (Brunello, 2009). They also helps in addressing the UK’s productivity challenge, with investment in skills being responsible for around a fifth of productivity growth (O’Mahony, 2012). Apprenticeships are for students aged 16 or over and combine working with studying for a work-based qualification from GCSEs or equivalent up to degree level.

In England, employer demand for apprentices has been persistently low and are heavily scarred by the legacy of Youth Training Scheme (YTS) (Fuller and Unwin, 2003). Repeated attempts to revive the system have been frustrated by the weak institutional framework for apprenticeships, which is characterised by low involvement or commitment from key stakeholders. There is also evidence that the quality of apprenticeships in England varies widely across sectors, and that it is much lower in those sectors where apprenticeships are not traditional. Apprenticeships in Austria are bound up with a notion of the importance of participation in work and occupational life. A sense of craft and skill at work is not only important in traditional apprenticeship sectors, such as manufacturing, or in highly skilled occupations. While there are many examples of good apprenticeships in England, too often a focus on meeting employers’ immediate skills needs means that the role of vocational education is largely restricted to assessing competence in specific job roles.

Austria has more than 250 apprenticeship trades, ranging from car mechanics and hairdressers to clerks and retail sales advisers. Austrian employers get significant input into

8 course design and content, making sure the skills they need are developed. In England, there are at present 203 apprenticeship frameworks, that guide the industry-specific competencies, technical skills, theoretical concepts and relevant knowledge required to obtain a vocational qualification. Approximately one third of all apprenticeships in England are in engineering, vehicle maintenance and construction. The remaining two thirds are offered in service sector occupations.

This relationship was very different in England (until 2013) the principal relations were between private training providers and the apprentice, with employers in a secondary role, providing work experience. Alongside this relationship were the assumptions that ‘minimum time to certification’ is efficient and injects people rapidly into the labour market and reduces burden on the public purse. This is based on a serious neglect of the role and internal economy of ‘classical apprenticeship’ (Steedman 2010; Ryan et al., 2011). This seriously weakens the curriculum content and learning outcomes (Hiebert and Borgen, 2002). In the Austrian model the principal relations in the apprenticeship are between the individual apprenticeship and an employer (Steedman, 2010). Provision is of long duration, with a depressed trainee rate relative to experienced worker wage rates. This provides the necessary internal economics to make the model attractive to employers. The trade-off within the system focuses on the depressed trainee rate, which the trainee tolerates due to the personal capitals they gain during the learning, and which ultimately lead to enhanced progression and wage return.

Discussion

Is it possible to develop ‘distinctive’ and valued TVET education that has currency? What needs to change in the English system to achieve this

Governance of Apprenticeship

England does not yet have a coherent partnership between government, employers, trade unions and apprentices. The split in responsibility for apprenticeship between two ministries (the Department for Education and the Department for Business, Innovation and Skills)

9 makes change more difficult to achieve and from 2013, groups of employers can develop apprenticeships, working together to design standards and assessment approaches (DfE, 2015).

In Austria the federal government stands aside from the administration and management of apprenticeships. Employer and trade union organisations largely determine the content of apprenticeship certificates. Occupational skills are acquired on employers’ premises in the workplace. The federal government determines the strategic direction and objectives of apprenticeships and legislates to provide a framework which sets out and safeguards the rights of apprentices and employers. The British government, by contrast, have left issues of standards and length of apprenticeships in the hands of employers while insisting on employed status for apprentices. Much anecdotal evidence suggests that this distribution of responsibility has led to high costs and poor returns for apprentices, in particular in the newer service sector apprentice programmes. This lack of employer and trade union commitment has led to the government becoming the dominant partner in the funding, management and promotion of apprenticeships.

In the dual-system countries, the government defines apprentice and employer rights and responsibilities and regulates these by statute. The resulting regime is designed to ensure high-quality training with a strong transferable element and to protect both apprentice and employer from excessive cost. Employers, in England, appear to be unwilling to pay apprentices, who, after all, have full employee status, a wage which allows the employer to recoup the production lost when apprentices are training. As a consequence, there is no minimum duration for an apprenticeship in England, with the decision left largely to the individual employer. The average time it takes to complete an apprenticeship in England is just one year, compared to an average of three to four years in Austria (Steedman, 2008). In 2011, the British government introduced, for the first time, a statutory minimum number of guided learning hours for apprenticeships. However, the amount specified 280 hours a year, with a minimum of 100 hours or an average of two hours per week off-the-job is still very low compared to Austira, where apprentices study for at least one day a week in off-the-job learning in a vocational college, in addition to their on-the-job training. This is to ensure that young people gain transferable skills that support mobility and progression in the labour market. The Austrian dual educational components aim to be strong enough to support entry into other sectors or higher education (Steedman, 2011). These wider aims for

10 apprenticeships in Austria are reflected in much higher requirements for the general and technical or knowledge-based components.

Apprenticeship Funding

In all apprenticeships, employers are normally expected to enter into a contract of employment with an apprentice and, having done so, to take responsibility for paying the agreed wage and other costs. The dual, Austrian, system in its purest form shares the costs of apprenticeship training between government (which funds general education) apprentices (who accept reduced earnings) and employers (who bear the costs of occupational training). In Austria, the cost of apprentices is reduced, further, by government-sponsored employer incentives in the form of either direct subsidies for apprenticeships and/or tax deductions (OECD, 2009). These policies are often justified with the argument that, in the absence of public intervention, the market produces less than the optimal proportion of apprentices (Brunello, 2009).

The main difference between the UK system and those successful schemes abroad appears to be a few “modest” Government subsidies worth a fraction of the overall cost, employers expect to pay for the apprentices’ training and wages (Lodovici et al., 2013). In contrast in the England, apprenticeships for 16-18, the government funds 100 % of the cost of the training; if the apprentice is 19+, the government funds up to 50 %. Government funding to cover the cost of apprentice training is not paid directly to the employer unless the company has 5000 employees or more. As from April 2017, the UK Government will introduce a levy on businesses from which it expects to raise around £3bn a year. The objective of the levy is to give employers more control over where, and how, money is spent on apprenticeships. Employers in the UK with an annual wage bill of more than £3m will be charged a levy of 0.5% of their full UK payroll, regardless of whether they make use of the funding available for apprenticeships. Any business paying into the levy will be given an allowance of £15,000 per tax year to offset against any levy payment made. Businesses with an annual wage bill under £3m will be able to draw from the levy fund to access subsidised apprenticeship training but new funding rules will apply. The CBI do not support this levy, due to the risk that it will be unsuccessful. This is supported by Wolter and Ryan, (2011) and Brunello (2009) who imply that this type of funding may cause deadweight losses and result in substitution effects.

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Cost benefit of Apprenticeships

The social benefits of apprenticeships exceed costs, although these schemes initially require investment by employers, individual apprentices and society/public budgets (McIntosh, 2007). Furthermore, Quintini and Martin (2006) show that in European countries where the apprenticeship system are most developed young people have better labour market outcomes than in other countries. Austria, were found to be among the countries with the lowest share of youth experiencing repeated periods of unemployment. Moreover, in Austria more than half of those leaving school found a job without experiencing any period of unemployment.

The dual system demonstrates that high-quality, cost-effective training can be provided by employers in the workplace. Providing training gives employers a direct stake in decisions about training content and increases incentives to become directly involved in decision making. Ryan (2001) and Steedman (2005) point out that this result may be due to better matching of training to labour market demand achieved in apprenticeship programmes, where training is contingent on a job offer from the employer. However, while most regulated apprenticeship systems offer young people much improved employment prospects, they are not always able to guarantee higher pay or career prospects in the medium run (Quintini, Martin and Martin, 2007).

Discussion

Is it possible to develop ‘distinctive’ and valued TVET education that has currency? What needs to change in the English system to achieve this

Participation in Apprenticeships has increased steadily in England over the last eight years. Using pooled data from the Labour Force Surveys of 2004 and 2005, McIntosh (2007) found that completing an apprenticeship is associated with a 16%-18% wage increase, compared to unskilled workers. However, apprenticeships appear to reduce female pay significantly (Ryan, 2001). While in Austira, with respect to low educational attainment, apprenticeships show wage gains in almost all studies and countries analysed. Positive effects on wages were found by Hofer and Lietz (2004) and by Fersterer, Pischkeand and Winter-Ebmer (2008). Hofer and Lietz find that unskilled workers earn 10-12% less than former apprentices.

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Conclusion

The current generation of young Britons leaving education have never gone into the labour market with more years of schooling and higher levels of qualifications yet they are losing out in the struggle for employment. If England is going to offer more specialised routes into the workplace, whether via a traditional education, specialised education or a more employer- led route, curriculum programmes should link to national standards including those from industry. Furthermore, where they exist, the provision should not narrowly replicate workplace experience; its function is to provide broader learning which cannot be provided by the workplace, to consolidate learning in the workplace, and ensure that skills and knowledge related to future professional practice are developed.

With the introduction of more specialised TVET provision in England, it may possibly allow for routes to represent ‘vocationalised’ general education. Acute specialism is then integrated, when the precise aspirations of the learner are identified. Therefore, they go into more specialised training or back onto a general education route (European Commission, 2015). This type of system will offer students and parents many choices. This is already well established and a distinctive feature of the Austrian educational system, with extensive co- operation prevailing between the technical and vocational community and educational institutions. The dual education system, which combines theoretical and practical teaching, is applied in preparing for careers requiring apprentice training as well as in higher vocational schools.

Though the English system can be deemed more efficient than educationally effective (Dolton, Marcenaro-Gutierrez and Still, 2014), such education efficiency is not immediately concerned with raising international assessments. This could be for the simple reason that the English system has constraints which prevent the system from moving to the next level. With unlimited funding available much more could be done to increase education outcomes, but this is unrealistic: national budgets are limited, and spending needs to be prioritised accordingly in order to deliver value for money. One could suggest that extensive resources are already being deployed and therefore it could be the case that underlying flaws exist in the education delivery model. The system has the potential to increase outputs for limited additional inputs by making policy changes, such as the additionality of education provision provided by technical/vocational and apprenticeship provision. Therefore, the addition of TVET may allow for increased participation in wider society. However, Austria’s

13 performance is better in quality measures than in terms of efficiency. This may be because they can prioritise outcomes over cost, or perhaps because their system generates other outcomes that aren’t captured by PISA rankings. Or more simply, it may be because the system is over-resourced beyond a threshold required to drive quality increases. In addition, schools can develop alternative compulsory subject areas which enable the students to design their school career in line with individual talents and interests. Furthermore, optional educational programmes and subjects may be specified within the scope of the school’s autonomy to provide important additional qualifications for practice.

The re-introduction and the expansion of apprenticeships could support labour market progression prospects and clearer routes to upskilling young people. It would also address the skills shortages that are apparent in some parts of the economy, particularly those associated with STEM subjects. Each vocational stream consists of a number of different occupations, and each occupation consists of a number of different jobs. This type of model is more akin to a horizontal model (Wheelahan, 2013) which supports movement between organisations.

Though vertical diversity may be attractive (as in the Austrian system), it can promote sentiments associated with ‘elite, excellence and quality’ which legitimise winners and stigmatise those of average ability or lower (Teichler, 2008). It has not yet been possible to identify the net effect of widening access to schools which provide a more academically oriented, general education on overall educational outcomes (OECD, 2000; Maurin and McNally, 2007). There is a danger in the developing English model that vocational education will be interpreted in theory and practice as ‘trade’ education: as a means of securing technical efficiency in specialized future pursuits. Education would then become an instrument of perpetuating the existing industrial order of society, instead of operating as a means of its transformation. The desired transformation is not difficult to define in a formal way. It signifies a society in which every person shall be occupied in something which makes the lives of others better and worth living (Dewey, 2012). Therefore, the focus between academic and vocational provision is not simply a technical matter of designing and implementing a better system, it is above all a governance process. Associated stakeholders have considerable influence over the progress of hybridisation and qualification currency, especially in more flexible systems. As a consequence, they have some discretion in how they value the outcomes of education. Ultimately, there is not a simple rule that suggests a route system (Austrian Model) is bad and a unitary system good (English model).

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