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    What is broken about the dual VET system (and how it can be fixed)
    Dual vocational education and training (VET) systems are renowned for their strong political support, high level of private-public cooperation, and smooth transitions into the labor market. However, the expanding general education at the upper-secondary level offers employers an alternative avenue of skill provision. Along with shifting educational preferences, the need for higher technical and general skills in some jobs, and the loss of interest for manual, traditionally blue-collar occupations, general education is gaining ground at the expense of vocational training. These trends are likely to engender skill mismatch, as well as skill shortage, problems even in the context of dual VET where such issues historically have been less pertinent. In this paper, we study training firms’ concerns with the dual VET system. We explore factors predicting firms’ worry about imminent skill shortage and how it is connected to dual vocational training and use novel survey data with 2’700 Swiss training firms). We link the survey data to data on local labor markets and institutionalized educational pathways. Our study contributes to the scholarly debate on skill shortage and skills mismatch problems, showing the which problems and solutions that are specific to firms given the type of work they train for.
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    To train or not to train, that is the question: Swiss firms’ training consideration in a changing skills landscape
    The demands of the labor market are changing rapidly and as a result, skill shortages are becoming more common across various industries. In countries with a collective skill formation system, where vocational education and training (VET) is a well-established part of the education system, firms play a crucial role in providing training and producing skills needed on the labor market. However, providing training and hiring apprentices is costly and demanding for firms, whereas the option of poaching graduates from other firms, or to hire experienced skilled workers may be more attractive. In this paper, we examine which firm types choose to opt out of, or to stay in, VET and what factors contribute to their decision. Using novel survey data from over 2’500 Swiss training firms, we identify the factors associated with likelihood of consider remaining in or leaving VET. We find that hiring difficulty being a strong factor associated with opting out, whereas low hiring selectivity, high retention rates and stronger institutional embeddedness are associated with a consideration to stay. We propose a framework that categorizes firms into four groups that inform our understanding of where the risk of opting out is high: “Selective strugglers”, the “Loyal veterans”, the “VET opportunists” and the “VET flagships”.
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    Institutional Change and Employers' Perceptions: does the Expansion of General Education Compete with VET?
    In knowledge economies, technological advancements have brought about new occupational skill demands. To accommodate these needs, an expansion of general education (GE) has followed across levels at the cost of dual vocational education and training (VET) tracks. However, dual VET remains a dominant educational pathway in coordination-based economies where skill formation is collectively organised, such as Switzerland. Yet, this trend challenges well-established collective action among training firms as it reshuffles their dependency on VET. In this paper, we study how different institutional settings under structural change affect training-providing firms. We explore how the regional labour market situations and the expansion of GE shape firms' perception of general education as a competitor to VET. This perception is important as it has major implications for a firm's skill acquisition strategy and how it wants institutions to adapt. We show that, by combining novel survey data (with over 2'0002,000 training firms) with labour market and educational statistics, GE expansion has no significant effect on the view of GE as a competitor; other factors primarily shape firms' perceptions.
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    Supernovas, Sceptics, and Loyal VETerans: Swiss firms’ training considerations in dual vocational education and training
    In this paper, we address the concerns about the viability of a core pillar of coordinated market economies, in-firm vocational education and training (VET). With the emergence of the knowledge economy, technological advancements have changed labor market demands faster than institutions providing VET can adapt. This trend has aggravated shortages of workers with adequate skills across industries and created uncertainty about the longevity of skills, causing doubt among firms that training new workers might not return their investments. We draw on Hirschman’s Exit, Voice, and Loyalty theory to explain what type of firm chooses to opt out of, or to stay in VET. We argue that an interplay between Voice and Loyalty insulate firms from opt-out considerations, even in face of hiring difficulties. On the other hand, satisfaction with the system does not alone dissuade firms from considering opting out. Using novel and unique survey data from over 2’700 Swiss training firms, we identify the sector- and firm-level factors behind their opt-out considerations. We find that in high- and low skilled sectors opt-out considerations are more common than in traditional mid-skilled sectors. Regarding the firm level, we show that the institutional embeddedness and internal strategies play a major role as well. To link the two levels, we propose a framework that allows us to sort firms into four categories along sectoral groups, indicating where risk for opting out is highest.
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