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Favourable educations

Policy Instrument

Favourable educations

Fordelsuddannelser
Denmark

Description

Timespan

Since January 2017

Stage

Fully operational

Foundations

Policy area

The favourable educations falls under the legislation of the adult vocational training programmes.

Policy goal

The policy goal of the instrument is to raise the number of skilled workers and to influence the decision of young people to choose vocational trainings where more skilled workers are needed. The scheme provides subsidies to businesses who agree to sign an internship agreement with a student from one of the favourable educations. It is especially designed to meet future skill needs, as the employer federations, in collaboration with the Ministry of Education, will decide which educational programs are eligible for the scheme. In addition, it provides guidance to the students or employees who wish to take a vocational education program, with good opportunities for internships and job opportunities in the future.

Mismatch

Explicitly designed to address skill mismatch

Favourable educations are educational programs on a "positive list", which means programs where employers expect a particularly high need of labour force.

Administrative level

National

Main responsible body

Ministry of Education

Stakeholders

The employer federations each year designate the favourable educations for subsidy. The government has the overall responsibility of the scheme (administrating, monitoring and disburse of funding). The employees trade unions do not have a role in the program, but the employers trade organisations are responsible to appoint the favourable education programs. They decide which existing programs should be a favourable program in the coming year.

Funding

Businesses that draw up a trainee agreement receive a bonus of a maximum of 5,000 DKK (€671.76) per student. The scheme can provide total funding of 20 millions DKK (€2,687,058) and is funded by the Ministry of Education.

Intended beneficiaries

The favourable education programs is first of all attractive for people that wish to take a vocational education, as the educational programs provide a good opportunity for internships and future jobs opportunities. The businesses will furthermore earn an extra financial bonus if they draw up training agreements with students on one of the favourable educational programs.

Processes

Use of labour market intelligence

The instrument provide information on current and future labour market needs as the employers trade organisations/federations appoint which educational programs are eligble for a favorable "bonus", which give a better overview on the job areas and skills that are most needed in the future.

Financial schemes

The instrument is based on a subsidy scheme extended to businesses, who draw up students agreements with trainees on one of the favourable education program. The business can thereby earn an extra financial bonus.

Frequency of updates

Every year.

Development

None

Barriers

One of the main challenges for the success of the instrument is that there are few students seeking some of the 'favourable' educational programs. For some educations, the geographical distance might be a problem and it may also be difficult to match students and businesses. The Ministry of Education and the Continuing training and education committees is therefore obligated to support the instrument through information and guidance.

Success factors

Due to the strong involvement of the employer federations, the favourable educational programs are recognise job areas where there are need for skills, and thereby good opportunities for students to achieve an internship and job opportunity.

Monitoring

The scheme is measured annually by the Ministry of Education. At the end of 2017, the Ministry will reveal who is eligible for the subsidy.

Innovativeness

Slightly innovative

Offering a subsidy scheme for businesses that draw up internship agreements with students taking a vocational education in specific sector that have high demand of skills, is to some extent innovative compared to before.

Sustainability

Evidence of effectiveness

It is too early to present evidence of the effectiveness, as the instrument was first implemented in the beginning of 2017. In the beginning of 2018, it will be possible to see if the favourable education programs has increased their students uptake and the number of traineeships.

Engagement of stakeholders

The stakeholders have in the tripartite an agreement committing themselves to support the scheme and provide information and guidance to students taking a vocational educational program, in order to increase the volume of the favourable educational programs.

Transferability

Easily transferable

The principle of offering favourable education and training programs with a subsidy provision is quite transferable in itself.

Sustainability

The scheme will continue in 2018, but it remains uncertain if it will continue thereafter.