Vocational training costs and economic benefits: exploring the interactions

Nataliak Samoliu,Yuriy Bilan,Halyna Mishchuk

doi:10.3846/jbem.2021.15571

Abstract

The aim of the article is to study the relationship between vocational training costs and economic benefits at different levels of economic relations. In the structure of labour costs in the EU, there was the highest share of vocational training costs in Ireland (2.79%), Great Britain (2.53%), France (1.51%), which is reflected in the economic success of these countries. A comparison with Ukraine, which has European integration intentions, confirms that the underestimated role of investing in lifelong learning has relevant links to economic performance. This study at the enterprise level (based on the survey of 356 employees) found that higher costs of vocational training are a sign of profitable enterprises. At the same time, employees’ interest in short-term training programs is higher, which they obviously assess from the standpoint of higher personal economic benefits in the short term. At the same time, the analysis performed by means of the Fechner correlation coefficient confirms the existence of a positive impact of vocational training costs on changes in the main macroeconomic benefits indicator – GDP per capita. This allows drawing conclusions about the need to develop professional training programs for staff as one of the drivers of macroeconomic development.

Highlights

Today, the expenses for professional training of employees is one of the determinants of human development and at the same time is one of the key factors of macroeconomic efficiency
The aim of this work is to study the economic benefits of vocational training costs through a two-level analysis – at the country level and based on the results of a survey of enterprise personnel
As well as the relationship between training costs and economic performance of enterprises, this research is aimed at testing the following hypothesis: Hypothesis 1 (H1): the costs of vocational education at the enterprise level are related to the profitability of their activities and are more active in enterprises, where the relationship between administration and employees is regulated by a collective agreement

Summary

Introduction

The expenses for professional training of employees is one of the determinants of human development and at the same time is one of the key factors of macroeconomic efficiency. The awareness of this is reflected both in individual decisions on vocational training and in. One of the agreements developed with the participation of the Australian Government’s Productivity Commission to develop workers’ skills declared the promotion of personal benefits in the form of “increased rates of workforce participation”, and enables all working age Australians to participate effectively in the labour market and contribute to Australia’s economic future” (Australian Government, 2020, p. 4)

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Results

Conclusion