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Comparative Studies: Youth Unemployment, Education and Training Policies in Germany, South Korea, Spain and the United States Hae Na Kim, MPA Doctoral Candidate Graduate Associate and PhD Student Department of Educational Studies College of Education and Human Ecology The Ohio State University (Columbus) [email protected] Global, Comparative and Cross Cultural Dimensions of HRD Refereed Paper submitted for presentation at the UFHRD Conference in June, 2014 Postal address: PAES Building 471 305 W. 17th Ave. Columbus, OH 43210 The United States Copyright © 2014 Hae Na Kim

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Comparative Studies: Youth Unemployment, Education and Training Policies in

Germany, South Korea, Spain and the United States

Hae Na Kim, MPA

Doctoral Candidate

Graduate Associate and PhD Student

Department of Educational Studies

College of Education and Human Ecology

The Ohio State University (Columbus)

[email protected]

Global, Comparative and Cross Cultural

Dimensions of HRD

Refereed Paper submitted for presentation at the UFHRD Conference in June, 2014

Postal address:

PAES Building 471

305 W. 17th Ave.

Columbus, OH 43210

The United States

Copyright © 2014 Hae Na Kim

Abstract

The purpose of this study was to compare the effectiveness of training and education polices in

reducing youth unemployment and provides insight into this global problem by analyzing and

comparing situations in Germany, South Korea, Spain and the United States. This study is based

on a recent literature review and analysis using web based and database search.

According to the statistics of OECD, Germany, South Korea and Spain and the United States

were chosen. Research questions are 1) what are the education and training policies among

selected countries to reduce youth unemployment? What are the characteristics of these training

policies? 2) How are these policies and training programs implemented to reduce youth

unemployment and to search for more effective training?

Findings are work-based training help to reduce youth unemployment and youth training has

been emphasized to acquire more practical skills and to promote a transition into employment.

Keywords: Youth, training, policy, unemployment, education, international HRD

Introduction

Youth unemployment is a serious problem throughout the world as many countries have faced

the issue of how to handle jobless youth. This global problem goes beyond unemployment

because it stems from and perpetuates economic and social problems.

The global financial crisis in 2008 severely increased youth unemployment by bringing about

unstable financial markets (Bell and Blanchflower, 2009). The International Monetary Fund

(IMF) report showed an increase of the unemployment rate in developed countries from 5.4 % in

2007 to 9.3 % in 2010 (IMF, 2009; Bell and Blanchflower, 2009). Youth would be the first

victims of this situation because they do not possess sufficient practical experience and skills.

This situation would result in long term unemployment and delays of marriages, which would

cause low birth rate eventually.

In European countries, approximately one in five youths does not have jobs (Council of Europe,

2011). Education and training must play a crucial role in facilitating a successful transition from

school to work; however, even many educated youths have not been able to enter into the labor

market. According to the European Council, the cost of youth unemployment is approximately

1.21% of the EU's GDP (European Council, 2013). The long-term impact of this issue could be

much more serious than anyone ever anticipated.

Youth unemployment can have an impact over a lifetime. If workers get their first job at 30 years

old rather than at 20, they would likely be able to save less money and get married later and have

fewer children, which would bring about a labor shortage in the future. These days it is common

for young people to work at an entry level job that requires long working hours with low pay,

like at a car wash, without sufficient legal protection (UN Economic Commission for Africa,

2005). Low pay jobs would not usually provide enough legal protection and insurance compared

to highly paid jobs. Inexperienced youth who take low paying jobs would not receive enough

legal supports by working.

Statement of Problem

In 2001, there were 7.5 million NEETs, those youths “not in education, employment, or

training,” from age 16 to 24 in European countries whose ratio is highest among the Southern

and Eastern European countries and lowest in Germany, Holland and the Nordic countries

(Barysch, 2012).

As youths do not possess the necessary skills and expertise for the job market after finishing

school, education and training policies must play important roles to help them gain these

practical competencies. If this does not occur, these youths may change the composition of the

population and lessen future productivity by giving up seeking their jobs and remaining jobless

permanently. Employers would prefer new graduates when the economy recovers and they

would have to face permanent unemployment and would not get married. The governments have

various types of training and support specifically for this population. It seems there is a gap

between the qualifications of youths and the needs of the labor market because young people do

not have enough relevant skills: Therefore, this mismatch has resulted in structural economic

shifts (Council of Europe, 2011).

How to address youth unemployment in the economic decline through training and education is a

significant policy issue that will require much attention in the immediate future. How countries

have implemented their training and education policies by comparing them to different training

systems of other countries could provide some insights for the future.

Purpose of the study and research questions The major goal of this study was to compare

government sponsored education and training policies to promote employment of youths in

Germany, South Korea, Spain and the United States and to explore the characteristics of these

policies, their similarities and differences. The second goal was to analyze the current situation

of youth unemployment and training and education in each country. To accomplish these goals,

two research questions were addressed:

1) What are the education and training policies among selected countries to reduce youth

unemployment? What are the characteristics of these training policies?

2) How are these policies and training programs implemented to reduce youth

unemployment and to search for more effective training?

Method

This study is based on previous studies and literature review of youth unemployment and

government sponsored training. The web based and database search, using ERIC, were

performed using key words including youth unemployment, mismatch, job market, training

policy, training support and others. Refereed journal publications, journal articles, governmental

whitepapers, books, newspapers, magazine and conference proceedings were selected from the

search.

This study has chosen four countries based on the OECD statistics on the youth unemployment

rate released in 2013. According to the OECD (2013) (Organization for Economic Co-operation

and Development), Spain has the highest youth unemployment rate among all OECD countries

of, 53.2 %. The United States has 16.2%, which is close to the average of all the countries in the

OECD. South Korea and Germany have relatively low youth unemployment rates of 9.0% and

8.1%, respectively. In addition, Austria and Switzerland have the lowest youth unemployment

rate, similar to Germany, of 8.7% and 8.4%, respectively. Each country has different situations

and policies about training and education for youth based on their situation from the past and

now they try to seek and shape better future for youth. Comparing these four countries can yield

useful suggestions to find more effective measures to reduce youth unemployment.

The common training practice among Austria, Germany and Switzerland is based on a dual

system, combining in-company training and theoretical education which seems to be effective in

lowering youth unemployment. It seems this dual system has gained more popularity in countries

that have made solving the youth unemployment problem a priority. This system has been

mirrored in Spain and South Korea.

Theoretical Background-Human Capital Theory

The theory of human capital (Schultz, 1961, Becker, 1964, Mincer, 1974) differentiates

individuals by their education and training investment and accounts for some of the differences

in productivity between young people. Young people with a lack of education and experience

will have more difficulties finding employment (Giret, 2001). In addition, human capital theory

suggests that individuals increase their wealth by investing in on-the-job-training. The labor

costs of human capital will be relative to the return of investment, including future productivity,

by developing skills and knowledge of employees through education and training (Lepak and

Snell, 1999). If employees possess unique and valuable skills, this will increase the company’s

competitive advantage (Barney, 1991) because these skills cannot be duplicated or imitated by

another firm.

Youth Unemployment, Youth Training and Dual-system Education in Germany

Germany has a dual system which combines school-based education with on- the- job training.

This system can also be found in Austria, Denmark, Switzerland and Norway, which all have

relatively low youth unemployment rates (ILO, 2012).

Germany has maintained one of the lowest youth unemployment rates and 40 % of young people

participating in apprenticeships are in Germany (O’Higgins, 2001). This is due in part to the fact

that most young Germans have been involved in specific education or vocational training by the

time they are eighteen years old and these apprenticeships are implemented through formal in-

company training while young people obtain their academic training at schools (O’Higgins,

2001). Germany has expanded its vocational training to college students and has supported

training at Small and Medium-sized Enterprises (SMEs). On average only 8.5 % of those 25

years-old or below were registered as unemployed in Germany in 2011, while the rest of the EU

has experienced more severe economic crisis of which young people have suffered greatly to the

extent that every fifth young job seeker was unemployed (Venus, 2012).

Germany seems to have managed youth unemployment well throughout the economic downturn.

The structure of its economy lends itself well to apprenticeships and small manufacturing

businesses which are able to embrace lower-skilled workers, but the country has also been

effective at creating a more collaborative culture between government, employers and unions to

establish more employment and apprenticeship opportunities (Gross, 1998).

Trainees in Germany would spend one day or two days a week in schools and the rest of their

time in forms or training workshops and their curriculum is defined by the Vocational Training

Act (O’Higgins, 2001). In addition, trainees would be required a common examination at the

end of training and can receive a nationally recognized diploma (O’Higgins, 2001). This is called

‘dual apprenticeship’ which is a famous German vocational training. Companies can receive

benefits from the low cost of trainees allowance and training costs can be deducted from

companies’ taxable incomes through dual apprenticeship (O’Higgins, 2001). German vocational

education helps students to know what they should do as an employee and know their employer

and colleagues.

This German system means intensive participation in education and training and apprentices can

make a significant contribution to the expense and cost of their apprenticeship and training

(O’Higgins, 2001). In apprentice training, vocational training is regulated and all social partners

in implementing and administrating are involved in this system (O’Higgins, 2001). The direct

and indirect involvement of employers’ organization and workers’ organization have shown the

interests of individuals and this German dual system can give a protected entry into employment

for youths and skilled youths can find employment after finishing their apprenticeship

(O’Higgins, 2001). Also, skill recognition diploma possession can be highly valued by

employers because it can guarantee the quality of workers. In Germany, more than 300

professions are accessible only for people who have formal qualifications. This regulation can

boost general skill levels (Barysch, 2012).

The German government spends more money into apprenticeships and the trainees would take a

lower wage because they are apprentices and they are spending time out of the job at training

(Gross, 1998). In addition, the employers put money and effort into apprenticeships and would

take possibilities that trained someone can go off and do a different job (Gross, 1998).

In Germany, teenagers could enter a labor market as skilled workers because they would choose

at least three years of training beyond compulsory schooling (Gross, 1998). Many other countries

like South Korea have taken the German influenced vocational schools called “meister” schools,

which means “master craftsman” to reduce the country’s skill shortage and the government pays

the students’ room and board as well as their tuition (The Economist, 2012).

Vocational training schools are run by the government, while the employers control the

implementation of vocational training through the chambers of commerce (Bosch and Charest,

2006). Many courses are set by unions and employers' federations. State and local governments

and Chambers of commerce and industry cooperate. Unions and employers' federations set up

training courses and the local and state government’s offers provide the schools where

apprentices learn their theory. In addition, Chambers of commerce and industry implements the

exams, but school leavers show 2 % of drop rate a year while skill demands are rising (The

Economist, 2013).

Germany shares the training costs between employees and trainees are viable means of financing

(O’Higgins, 2001). The organizations of employers and workers are involved in deciding the

content of training and in supervising certification (O’Higgins, 2001). Companies are not obliged

to take part in the dual system but companies bear the training costs and German taxpayer supply

70 % of the total cost while governmental subsidies are limited (Labi, 2012). The system seems

to work as a main means of entry into the labor market. Recently, the number of companies

which offer apprenticeship is decreasing and the share cost of participants has been increasing

(O’Higgins, 2001). 469 companies (22 % of the total) offer dual training through apprenticeships.

Companies are not obliged to take part in the system, and the costs associated with it can be a

deterrent, especially since those that don't participate can still reap the benefits by poaching

workers who have been trained by other companies. But the system still provides the main means

of entry into the work force for around 60 % of the labor market. Companies bear the training

cost and German taxpayers burden 70 % of the total cost meanwhile the governmental subsidies

are limited (Labi, 2012).

But there are challenges in Germany. Youth unemployment rates have been higher than those of

older age groups and many young people experience stages of unemployment at the beginning of

their careers and transitions into the labor market have been become more unstable and difficult

since the mid1990s (Kohlrausch, 2012). Fewer young Germans are entering the labor market

now. In addition, the numbers of apprenticeship decreases and the governmental intervention has

become important in order to maintain the vocational training system in Germany. Growing

numbers of young people participate for at least one year in schemes of the transition system

before starting a fully qualifying training in the dual system or vocational school and about 6 per

cent of young people holding lower secondary degrees who left the general school system in

2002 stayed in the transition system for longer (Kohlrausch, 2012). Young people with a lower

secondary degree and with migrant background are more likely to enter the transition system

rather than receiving dual training (Kohlrausch, 2012). In short, Germany’s education system

provides youths a consistent and successful transition to adult working life by cooperating with

the government, business association and employers and it helps to secure job opportunities for

youths (O’Higgins, 2001). By implementing the new vocational training act, the German

government has tried to motivate more firms to offer training positions and to enhance the

flexibility of the dual vocational training system (Thelen 2007). Also, there is a need to ensure

continued support from employers by adapting the system in time to changing economic

conditions and requirements (Biavaschi, et. al, 2013).

The Federal Ministry for Labour and Social Affairs of Germany provide supports unemployed

workers aged 18 to 35 of the European member countries to reduce youth unemployment in

Europe and to offer skilled workers in Germany through “MobiPro-EU”. Benefits might include

travel allowance for a job interview in Germany, moving expenses allowance and funding for

German language course (the Job of my Life, n. d.).

Spain-Continuous Efforts for “Ni-ni” with the Germany Style of Education and Training

Spain has a term, "Ni-ni(ni trabjan, ni estudian)” generation which means “they don't work or

study” (Sánchez, 2012). Currently, Spain is attempting to introduce the German dual system

style of education to address the shortage of trainees and skilled staff. The Department of

Education in Spain contracted the German government to help Spanish youth be trained in

Germany companies. In this way, the Spanish government has incorporated the German dual

system (Ajuntament de Barcelona, 2012).

In their final year of compulsory education, Spanish students must decide whether to continue

their studies or attend pre-vocational training. Approximately 30% of students will not receive

their diplomas due to their weak academic performance. Now, students at age 16 can start their

vocational programs if they have not obtained their certificate (Field, Kis and Kuczera, 2012).

Spain offers education-based workshops to enhance vocational skills but does not have enough

employer-driven training. Although workplace training takes place at firms upon the completion

of training programs, it is doubtful that these are more effective than apprenticeship systems,

although more workplace training would promote a smoother school to work transition (Field,

Kis and Kuczera, 2012). As workplace training is required at upper secondary and postsecondary

institutes, students take 10 to 12 weeks of mandatory workplace training before the completion

of their vocational education (OECD, 2012).

In Spain, temporary employment used to be uncommon but the percentage of temporary

employment in Spain has increased. Spain had a large temporary employment share, 32.1% in

2000 and 24.9% in 2010 which are over than the average of OECD, 12.4% (OECD, 2011).

Youth usually start with a temporary contract, which will be in place for an extended period of

time (OECD, 2007; Field, Kiss and Kuczera, 2012). As Spain has promoted employment

protection reform and more temporary contracts, youth have served as temporary workers and

face employment instability.

In Spain, vocational training is available to only 6% of the unemployed and its accessibility is

not popular to people who are in need although vocational training programs in Spain should be

accessible to more unemployed people. It was caused by employers’ lack of interest in formal

vocational training and academic training preferences (Planas, 2005).

Spain has a large school dropout rate up to 30% and also high university graduates (García 2011;

Biavaschi et al, 2012). Also, there are jobless immigrant youths. The economic crisis has reduced

opportunities for immigrant youths who are not highly skilled. Immigrants usually took jobs like

which Spaniards have not favored and would be more vulnerable when facing the economic

crisis (Arango, 2013).

Spain has some regions in which the government leadership has failed to address the needs of a

diverse population (Field, Kis and Kuczera, 2012). Therefore, it is a high priority to obtain

consensus between the national government, more cooperation among communities, employers

and labor unions on training policies. The northern regions in Spain have low unemployment

rates and low early school leavers and high split participation rate in vocational education and

training is higher compared to those of the southern regions (Souto-Otero, 2012).

Madrid has implemented a dual system of vocational training with companies like Microsoft and

Hewlett-Packard by using its training centers. Trainees spend two thirds of their time in

companies and one third in the vocational center. The Basque area where implemented dual

system from 2007 to 2010; however, there has been problems with financing the program,

getting support from trade unions and candidates who have difficulties in finding contract and

positions of companies (Souto-Otero, 2012).

Spanish SMEs do not have a long tradition in providing training, so the role of companies has

not been significant compared to that of the state, which provides subsidies applicable to all

companies participating in the dual training (Souto-Otero, 2012). Although the German model is

not perfectly transferable to a situation in Spain, the model might help Spain to change its

theory-oriented system to more practical one.

Spain has not collaborated to meet the needs of industry. More collaboration among employers,

employees and the state should be encouraged. How to make vocational training more attractive

and more accessible could be a starting point.

Introduction of P-TECH and the Rise of In-company Training in the US

Germany is famous for its renowned government sponsored dual system, which appears to be

effective for reducing youth unemployment. The governments of South Korea and Spain have

attempted to introduce the German dual system recently, while the United States has maintained

its focus on on-the-job training at specific companies.

The problem with the system in the United States is that it is difficult to monitor and control the

quality and success of the training. Recently, special technical schools, like P-Tech mentioned

above, have been introduced to aid in the establishment of a more highly skilled workforce.

Employment rates for high school age youth have fallen 20 % over the last 25 years in the U.S.

(Smith, 2011). Even more disturbing is that, the percentage of adults employed in traditionally

"teen jobs," such as fast food worker, has risen due to immigration and polarization of the adult

labor market (Smith, 2011). At the same time, the percentage of teens participating in

educational activities over the summer and enrolling in educational programs during the school

year has also increased (Council of Europe, 2011).

The youth labor force aged 16 to 24 working or looking for jobs increases between April and

July each year (Bell and Blanchflower, 2009). During these months, large numbers of high

school and college students search for summer jobs and many graduates enter the labor market

seeking permanent employment (Bell and Blanchflower, 2009). In the summer of 2009, youth

labor grew from 2.6 million to a total of 23.7 million and actual youth unemployment has grown

in terms of levels and rates since 2007. The most rapid increase was from youths who were

searching for full-time employment (Bell and Blanchflower, 2009).

Unemployment rates show differences among race. The persistence of racial inequality seems

visible as there are higher unemployment rates for Blacks (31.2% in 2009) and Hispanics

(21.7%) (Bell and Blanchflower, 2009).

This might be a structural problem because access to relevant education and well-paid jobs were

not ensured for a long time. For the long-term, a continued investment in educational access for

young people should be encouraged because there is a strong negative correlation between

educational attainment and unemployment (Henry, 2010). Any solutions for youth

unemployment must include attempting to increase high school graduation rates and access to

higher learning or vocational training; however, important policy initiatives like increasing

access to education seems quite slow (Henry, 2010).

Instituting education and training policies should be a priority for government, labor and

business because educated workers perform better and have better production (Kalleberg, 2011).

Although there is a consensus about the necessity for efforts to improve education, skills and

employability of youths in the U.S., more enhanced solidarity and innovative arrangements in the

workplace would be helpful (O’Higgins, 2001). For these purposes, stricter graduation

requirements and merit scholarships can be solutions that reflect labor market competition

(O’Higgins, 2001). In the U.S., certification is not required, which is quite different from

Germany. Rather, its focus on on-the-job training and firm-specific skills and training is not

generally standardized (O’Higgins, 2001). It is not clear if there is any centralized federal public

policy in the U.S. to manage and address youth unemployment when compared to the public

polices of France and Germany. In the U.S., there is a clear divide between academic and

vocational schooling and learning on- the-job. Dual vocational training exists in some sectors,

but social partner structures are lacking, so young people are quite vulnerable in an otherwise

flexible labor market setting (Biavaschi, 2013).

In general, employers in the United States have more power to hire and lay-off their employees

at will because job security is weak compared to other OECD countries. In the U.S., Pathways in

Technology Early College High School (P-TECH) in New York, which opened on September 8,

2011, has attracted attention as a role model for future employment training in America. This

technical high school helps students obtain skills in technological areas by maintaining a

partnership with the New York City Department of Education, New York City College of

Technology, City University of New York, and the IBM Corporation (P-TECH, n. d.).

In TECH, students from grades 9-14 receive associates degrees in computer science and

engineering after six years of study. In fact, students can attend multiple college courses, which

are taught by instructors from New York’s City Tech campus.

Students follow the curriculum established by current or future employers from companies like

IBM and other industry partners, which includes internships to meet the minimum requirements

of entry-level IT job seekers. This school offers college and high school courses and students of

the P-TECH have mentors from IBM to provide guidance for structured online projects focused

on workplace learning (Aspen Institute, 2014). The Youth Build Program has been established to

help disadvantaged youths learn job skills within the construction sector. Since 1994, 120,000

students have been trained through YouthBuild have produced more than 22,000 units of green

housing in the United States (Youth Build USA, n. d.). The program helps 16 to 24 year olds

from low-income families entering the labor market to get a high school diploma or test-based

upper secondary qualifications (OECD 2010). Since 1994, 120,000 students trained through

YouthBuild have produced more than 22,000 units of green housing in the United States (Youth

Build USA, n. d.).

In addition, the U.S. has made efforts to establish a dual apprenticeship system for the vocational

education of youth, including the National Youth Apprenticeship Act under the administration of

George Bush and the School-to-Work Opportunity Act under President Clinton, but have not

been successful in the majority of cases. Employer organizations have largely failed to

coordinate long-term training plans because the federal government blocked the national

framework for the training systems, and the youth were not motivated to participate in these

apprenticeship programs (Lerman and Rauner 2011). However, some states were able to

establish and maintain a functioning dual apprenticeship system for youths, such as the Youth

Apprenticeship in Wisconsin.

Attracting interest from employers is not easy as they do not wish to pay the high costs of

training because they are unsure of whether they can reimburse these costs at a later stage

(Shapiro 1999). Despite the limited role of a formalized apprenticeship system, the American

structure is similar to the European system but is confined to adult education in “Registered

Apprenticeships” in the construction field. Currently, there exist approximately 500,000 adult

workers who are registered as apprentices. In contrast to the European model, American

apprentices are in their mid-to late 20s and have already gained work experience (Biavaschi,

2013). It is doubtful if there is a strong labor union in the US as labor unions have lost power like

a case of United Automobile Workers (UAW)’s decline, since Professional Air Traffic

Controllers Organization (PATCO)’s strike in 1981.Some more governmental supports for youth

jobs would be able to reduce youth unemployment in the US. President Barack Obama in the

2012 State of the Union address mentioned Germany's dual training as an exemplary for the US.

German companies like BMW have German-style apprenticeship programs in the United States

(Labi, 2013). In addition, North Carolina has offered “Apprenticeship 2000 program” for high

school students which takes 4-years (Blum, 2010). Companies pay for the programs but are

highly subsidized by the government, and taxpayers end up shouldering up to 70 % of the overall

costs of the system, according to the federal training institute (Labi, 2012). This is a German

influenced training system in North Carolina. However, Companies pay for the programs but are

highly subsidized by the government, and taxpayers end up shouldering up to 70 % of the overall

costs of the system, according to the federal training institute (Labi, 2012).

South Korea changing from Tertiary Education to Meister School

South Korea has achieved a rapid growth pattern led by skills development system of the

government to meet the industrial needs about more skilled workforce (ILO, 2012). To some

extent American youth unemployment resembles that of Korea because many formally high-

skilled youth are jobless or are in jobs below their educational level. Having a higher education

but a low-paid job is not only depressing for the individuals concerned but is also an economic

waste for the society (Schmid 2012b).

Now, Korea has the highest proportion of 25-34 year-olds who have attained an upper secondary

education among all other OECD countries. High-school graduates went to higher education ,

40% in the early 1990s and the ratio increased up to 84% in 2008 (The Economist, 2013). In

2010, 98% of 25-34 year-old Koreans attained an upper secondary education which shares the

highest among OECD countries and 65% of aged 25 to 34 have finished their tertiary education

among OECD countries (OECD, 2012)

South Korea’s education and training system has focused on more academic aspect and brought

the world’s highest college graduate ratio which means many of college graduates are jobless.

Industry’s involvement has been weak in official training and education and general vocational

training and policy making does not reflect labor unions and industry’s representative strongly

(OECD, 2012).

South Korea’s “Meister Schools” are a prime example of the government’s effort to change the

negative perceptions of vocational schools in the country as the Confucian influenced education

prefer university entrance. It is expected Meister Schools would educate students who can meet

the needs of industry and have a competitive competency to be betted skilled because the current

technical high schools still produce graduates who are specialized in simple tasks which cannot

meet the fast changes of industry (Park, 2011). To provide hands-on training experience, South

Korea introduced Meister Schools in 2010 hoping this could change the image of vocational

schools in South Korea and brought positive results as 33% of students were employed and 55 %

of students chose higher education. (McKinsey and Company, 2013).

SMEs shares 86% of Korean employment but are suffered from labor shortage: worker supply

for simple tasks is sufficient and more skilled workers are not sufficient for technically advanced

assignments (Park, 2011). But contrary to Germany where there are many thriving SMEs that are

core for the middle-level skill reservoir to support SME. Lower wages and work conditions do

not meet standards should be considered by the government (Schmid, 2013). How to encourage

more youths to work at SMEs should be considered as many youth still prefer to work at large

companies like Samsung or to work as civil servants rather than going to SMEs in Korea.

Participation rate for workplace learning in Korea are quite varied and linkage between

vocational system, industry and business are not strong although policy making try to address

challenges (OECD, 2012). More incentives on skills and the participation of industry in policy

making would be helpful for these challenges (OECD, 2012).

While the proportion of public expenditure of Korea in education is the lowest in OECD

countries, the Korean government might take co-financing in dual education which can reduce

investment risks as together with partners like employers (Schmid, 2013).

Korea has well-established tertiary education system and more market orientation through dual

education and learning would be needed. Baden-Wuerttemberg Cooperative State University in

Germany might provide an exemplary case to Korea as the university combines academic studies

and working experience for students and extend its dual system at higher education level. Still,

vocational training is not respected in Korea where has been influenced by Confucianism and has

preferred to go to 4-year universities. It might be helpful to focus on changing the image of

vocational training schools which accept students who could not get admission for traditional

higher education (Labi, 2012). More attentions on promoting vocational training schools and

changing the image of vocational schools would be paid as meister schools have gained

popularities.

Implications for HRD Practice and Research

It is my hope that this study will stimulate further analysis of youths and the role of public

officials in the field of training and education. This analysis will help young people develop the

competencies required by the job market in countries that have been suffering from high

unemployment. It can provide further information about the importance of practical training and

the curriculum redesign of vocational schools stressing more training.

In addition, it is obvious that the German dual system has efficiently boosted youth employment;

therefore, policy makers could implement this type of training and educational policy in

countries like Spain.

Based on this study, future research should address how youth unemployment could affect their

adult lives and how an on‐going decline in teen employment would change the labor supply

(Smith, 2011).

Conclusion

Increased youth unemployment may lead to severe consequences for many years in the future,

and youth must be the first priority (Bell and Blanchflower, 2011). It is the responsibility of

policy-makers to promote better qualifications, job mobility, inter-generational solidarity, more

apprenticeships and interaction between employers, employment agencies and youths (Bell and

Blanchflower, 2009). It is important to introduce policies to increase and develop the skills and

capabilities of young people and help them to enter the labor market as quickly as possible (Bell

and Blanchflower, 2009). Strong public policies at local, national and international levels are

necessary to encourage the acquisition of better qualifications and skills (Council of Europe,

2011). More tailored training and education programs should be sought.

Currently, the EU has been promoting a strong work-based learning program to facilitate the

transition of young people from education to work and has launched a European Alliance for

Apprenticeships to improve the quality and supply of opportunities across the EU. "Your First

EURES Job” is a pilot project to test the effectiveness of tailor-made services combined with

financial support to help young people aged 18-30 find a job in other Member States with a

minimum of six months contract in accordance with national labor laws. It provides information,

a job search function, recruitment and job placement support. In addition, it supports language

classes financially or diverse training needs and travel costs for young job applicants (European

Commission, n.d.).

Although vocational education might not be a cure-all, it can relieve a shortage of skills (The

Economist, 2012). It is clear that a college degree no longer guarantees a job for youths and the

governments should focus on teaching skills in colleges that are needed by employers (Barysch,

2012).

Combining experience-based training and occupational skills would be helpful for decreasing

youth unemployment. The German case shows that closer cooperation between the government

and industry, learning while working, and apprenticeship graduates generally create a smooth

transition into employment (Biavaschi et al., 2013).

More attention should be paid to “shaping a bright future” for the youths, as seen in the theme of

the conference, of “reflecting upon the past” by providing training and education for youths.

Public officials should move toward more innovative programs to lessen youth unemployment

problems by creating good jobs and better training opportunities (Kalleberg, 2011). Promoting

youth participation in workplaces would be a stepping stone to analyze the problems of skills and

education and to implement polices to support youth for their well-being and happiness.

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