Students’ choices today shape tomorrow’s skills pool

by Dirk Van Damme
Head of the Innovation and Measuring Progress division, Directorate for Education and Skills

One of the most decisive decisions taken in the course of a person’s life is choosing the field of study when entering higher education. This decision may be influenced by a variety of factors: family, social and economic background; cultural preferences among peers; values and belief systems; or even moral, political or ideological viewpoints. Preceding choices made during transitions in secondary school, have gradually narrowed the options available. Conflicting messages from employers, labour market agencies, governments and intermediary advisory bodies can impact the choices students make as well.

Nonetheless, students – mostly at the age of 18 – still have a fairly broad range of options to choose from. And today’s students no longer want to be the passive and obedient followers of antecedents, decisions made by others or well-intended advice. This is a decisive moment in which they take their own life in their own hands. Research on choice behaviour of students indicates that objective information, advice from teachers and counsellors or labour market prospects, do not have as much of an impact on the decision-making process as personal preferences and interests.

The latest issue of the Education Indicators in Focus series (No. 19) highlights the fields of study chosen by new entrants to higher education in OECD countries. The chart above illustrates that in European countries social studies, which includes business and law, is by far is the most frequently chosen field of study. On average, 32% of new entrants across OECD countries enrol in programmes in this field. Only in Finland and Korea is engineering, manufacturing and construction a more popular choice. In contrast, the field of natural sciences attracts only a small minority of students.

One of the most important dimensions in choice patterns is gender. The rapid increase in the number of female students has not yet altered the gender imbalances in certain fields of study, and on the contrary seems to have deepened them. Only 14% of female students enter a sciences programme, in contrast with 39% of male students. In contrast, education, health and welfare paint the opposite picture.

Students perceive their choices as purely individual decisions. And they make their choice with the optimistic belief that they will succeed in life, whatever the demands of the labour market. Yet, on an aggregate level they add up to a country’s future pool of human capital. The supply of high-level qualifications and skills is structured by a gendered partition between disciplines, each with their own specific configuration of skills and body of knowledge. The structure of human capital determines a country’s future range of possibilities in terms of economic and social development. Mismatches will always exist, but if they become large enough, a country has no alternative than to counterbalance this through high-skilled immigration. Countries acknowledge this risk and do take action to shift student choice patterns in a more desirable direction, by encouraging students, especially female students, to join STEM fields. These are all laudable and necessary actions, but it is unlikely that they will be able to significantly align student choices with future labour demand.

Even in the case of structural skills mismatch, the profile of a country’s future human capital should not be seen as a fatal verdict. Skills development is a dynamic process. Choices made at age 18 are important, but they do not condemn individuals or countries. Labour mobility across sectors and professions is an important phenomenon in today’s economies. New industries and occupations generate jobs and often recruit from various disciplines and professional backgrounds or bring new professions to life. (Why are there so many philosophers in the IT-industry?) Countries can prepare for future opportunities for growth by strengthening transversal skills in curricula, by fostering entrepreneurship and flexibility, and also by improving access to continuing education and training. Ultimately students have their own preferences when choosing a field of study and countries must cope with the outcomes of seemingly irrational choices.

Links:
Education Indicators in Focus, issue No. 19, by David Valenciano
On this topic, visit:
Education Indicators in Focus: www.oecd.org/education/indicators 
On the OECD’s education indicators, visit:
Education at a Glance 2013: OECD Indicators: www.oecd.org/edu/eag.htm

Chart source: OECD Education at a Glance 2013: Indicator C3 (www.oecd.org/edu/eag.htm)

Taking stock of education and skills: the youth perspective

With his vantage point at the helm of the largest youth platform in the world, European Youth Forum (YFJ) President Peter Matjašič is well placed to assess the state of education and skills across Europe. Indeed, the YFJ represents millions of young people by way of national councils from Iceland to Azerbaijan, lobbying such important international bodies as the European Union, the Council of Europe and the United Nations to adopt policies that are in the best interests of European youth.

Educationtoday met with him at the OECD Forum to get his views on the state of young people's education and skills across the continent today.

educationtoday: How can today's students and young workers prepare themselves for rapidly evolving labour markets? 

Peter  Matjašič: The YFJ has been working on education since its inception fifteen years ago, focusing on quality and equality of access. We have a holistic view of education. Formal education must be supplemented by non-formal education, by which I mean you still have an organised activity, but one that is not organised by universities or colleges but by youth organisations, for example. Plus informal learning, which is what you gain from life experience.

Education is not necessarily enough. What we strive for is what we call youth autonomy. And to make the transition to the labour market, there are certain tools, such as internships.

The Youth Guarantee is another measure to ensure no young people are out of employment, school or training for more than four months. It means there are public programmes that ensure young people can get an internship or be retrained.

educationtoday: How do you ensure companies don't simply use internships as a means to get skilled young workers at little cost? 

Matjašič: First of all, for us it was important to put things into perspective. To do this, we carried out a survey of 4 000 interns across Europe last summer. We found the majority of interns enjoy being an intern, but at the same time they are aware of their precarious status. So, internships can be good tools if they're managed properly. For example, interns should be paid at least the minimum wage of the country they work in. To ensure this, we developed the European Quality Charter On Internships and Apprenticeships and pushed EU policymakers to propose it. The commission picked it up and will present a proposal themselves.

educationtoday: You mentioned entrepreneurship. This involves a certain measure of independent-mindedness and creativity. How do you think schools can better equip young people with these qualities?

Matjašič: The so-called life skills, or soft skills, are not being acquired through education. The value of peer-to-peer education you get in youth organisations is immense. Education needs to be hands-on with analytical thinking, which tends to be more the case in Northern Europe, whereas in Southern Europe teaching is often more ex-cathedra, where students simply learn what the teacher tells them. And this model in times of crisis fails young people in that studying hard is no longer enough to get a job.

I would also add that the way society sees entrepreneurship needs to be changed. Today, too many young people see it as solely about profit.

educationtoday: To what extent do you feel there is a skills mismatch today in Europe? 

Matjašič: The problem is in part because there's a disconnect between education and jobs. But at the same time, we aim to foster autonomous and active citizens. We don't want young people to be told, for example, they have to study mechanics because that's where jobs are. They need to be informed to make the right decisions. Proper career orientation in schools is key.

educationtoday:  Do you think there is a problem of over-skilled or over-educated young people today?

Matjašič: From a technical perspective, in terms of the level of education they have, yes. However, if you look at the actual knowledge young people have, I have my doubts as to whether they're over-skilled. They're definitely over-educated for certain things. But I would say it's more up to the individual today. People feel they need a master's degree because a bachelor's is not good enough anymore, so you have a proliferation of degrees, which makes them less valuable. The knowledge is no longer the focus, and I see this as a danger. We don't want education to just be a tool to enter the labour market

educationtoday: What can be done to ensure young people today have a broad education that allows them to be active citizens? 

Matjašič: Non-formal education, informal learning and volunteering need to be recognized. People can then have specific knowledge from formal education and life skills from youth organisations, for example. Interdisciplinary approaches are also important.

Links:
European Youth Forum
OECD Skills Strategy
OECD Forum 2012
Photo credit: OECD Video Invest in skills to boost jobs and growth