The transition to the knowledge economy, coupled with demographic changes, challenge the resilience of the German political economy by generating a mismatch at the level of mid-level skills. We argue that Germany adapts to the mismatch by externalising its vocational education and training (VET) system, namely by expanding its geographical scope beyond its borders. We document this instance of institutional layering through a process tracing exercise informed by fourteen interviews and one hundred documents, both issued by experts and stakeholders. Our analysis provides evidence that the mechanism explaining this adaptation process is made possible by the interaction of three policy areas, namely Germany’s changed production, international cooperation, and migration strategies. We trace and examine the historical developments, policy efforts, and the political consensus within each policy area that paved the way for the externalisation of VET. Our argument has implications for the literature investigating the political economy of skill formation and policy transfer.
Event Title
15th International Conference of the Journal of Vocational Education and Training