Level 3 why is progress so slow

1
Level 3 why is progress so slow?

• Hilary Steedman
• Centre for Economic Performance
• London School of Economics and Political Science

2
Level 3 why it matters

• OECD claims that Level 3 is the minimum required
  for productive labour market participation in
  globalised post-industrial economies
• Research on UK labour market shows that wage
  returns to qualifications below Level 3 are
  negligible and sometimes negative

3
Government targets for 2000- how near in 2004?

• By age 19 85 at Level 2 or above
• By age 19 75 to achieve Level 2 in
  communication, numeracy and IT
• By age 21 60 to achieve Level 3 or above

4
International comparisons a look at progress
since 1994

• The countries chosen for comparison are France,
  Germany, Singapore and the US
• France, Germany and the US all have higher
  productivity levels per hour worked than the UK
• Singapore is an Asian tiger with very rapid
  economic growth and GDP per worker close to
  European levels
• Since we know that skills are an important part
  of the explanation of productivity levels and
  growth, these comparisons help us to understand
  where we may need to improve

5
This presentation draws upon research papers
prepared at the Centre for Economic Performance
at the London School of Economics as part of the
Skills for All Research Programme These and other
papers in the programme are available at
http//cep.lse.ac.uk/research/skills/skillsforall
.asp International Comparisons of
Qualifications Skills Audit Update DfES Research
Report No. 548 Using Pseudo Cohorts to Track
Changes in the Qualifications of National
Populations DfES Research Report No. 621
available at http//www.dfes.gov.uk/research/data/
uploadfiles/RR621.pdf
6
(No Transcript)
7
Proportions of 25-28 year olds at Level 2 or
higher
Source International Comparisons of
Qualifications Skills Audit Update
8
(No Transcript)
9
The race is not always to the fastest......

• Other countries, particularly Germany, had
  relatively modest qualification levels at 19-21
  because their young people take longer to gain a
  qualification
• By contrast, in the UK, our qualification rates,
  particularly at Level 3 and above, improve very
  little after young people reach the age of 21.
  This puts us well behind other countries when we
  look at older age groups
• After age 30 few countries achieve much growth
  the UK achieves slightly more than France and
  Germany but not enough to catch up

10
Proportions of cohorts born 1970-1972 at Level 2
or higher
Source Using Pseudo Cohorts to Track Changes in
the Qualifications of National Populations
11
Proportions of cohorts born 1970-1972 at Level 3
or higher
Source Using Pseudo Cohorts to Track Changes in
the Qualifications of National Populations
12
Population aged 25-28 by level and type of
qualification held
Level 3
Level 2
Source International Comparisons of
Qualifications Skills Audit Update
13
Labour market value of Level 3 vocational
qualifications

• We now look at how a Level 3 qualification
  affects the wages of individuals who also follow
  an apprenticeship training in particular
  whether the investment made in gaining a Level 3
  award by an individual offers on average a
  worthwhile financial return
• Research quoted isThe Returns to Apprenticeship
  TrainingAuthor(s) Steven McIntosh (CEP)
• Full text available in the form of a free pdf
  document at http//cep.lse.ac.uk/research/skills/S
  kills_Publications/default.asp

14
Wage Returns to Apprenticeship, NVQ 3
Qualifications and a Combination of the Two,
Males, 1996-2002
15
Labour market value of Level 3 vocational
qualifications

• Our research also investigated the employment
  probabilities of the 20 per cent of young people
  who claim they left school with no qualifications
• the relevant paper is
• The Impact of Vocational Qualifications on the
  Labour Market Outcomes of Low-Achieving
  School-LeaversSteven McIntosh (CEP) Full text
  available in the form of a free pdf document at
  http//cep.lse.ac.uk/research/skills/Skills_Public
  ations/default.asp

16
Subsequent Qualification Acquisition by Level of
School Attainment, Males and Females Aged 22-29,
2002
17
Policy implications

• How can achievement rates for qualifications at
  Levels 2 and 3 in post-16 education and training
  be improved - participation is not enough?
• How can we get the message across to young people
  that there are big rewards to vocational Level 3
  - and that it keeps options for further career
  development open?
• How can numbers gaining Level 3 qualifications
  through apprenticeship and in other vocational
  courses in particular the new Specialised
  Diploma be increased?
• What can be done to encourage those in work to
  gain Level 3 qualifications in the workplace?
• What can be done to encourage young people to
  take advantage of finance and facilities
  available to young people to continue working
  towards a Level 3 qualification after the age of
  21?