Study of Vocational Competency Development and Inequality

Abstract

This study aims to suggest policy measures for resolving inequality in vocational competency development. To this end, based on the definition of vocational skills development and inequality, an empirical analysis was conducted on inequality in vocational competency development from the perspective of vocational education, vocational training, and social mobility. It was found that the characteristics of family and parental background influence the transition of children to vocational high school and higher education and may lead to a transition to a stable job in the long run in terms of labor market performance. Participation in vocational training has a positive (+) effect on inequality in wages and income, and the lower the income bracket, the lower the effect of participation in vocational training on wages and income, confirming the need for support for these populations. This study also confirmed high levels of the perception of inequality in social mobility among graduates of vocational programs, implying the need for improving the related social and educational system.

▸Keywords: vocational competency development, vocational education, wage inequality, income inequality, social mobility

Ⅰ. Background and Purpose

□ Rapid technological change such as digitalization and automation has a major impact not only at home and abroad, but also on all sectors of the economy and society.

◦ The COVID-19 pandemic is fundamentally changing our society. Remote learning under social distancing has further widened educational gaps, and the academic achievement gap is widening further according to family and parental background.

□ This study aims to identify the relationship between vocational competency development and inequality based on the theoretical and logical basis of inequality; analyze inequality in vocational competency development from the perspective of vocational training, vocational education, and social mobility; and thus seek ways to contribute to vocational competency development and resolve related inequality.

Study of Vocational Competency Development and Inequality

▸Author: Kim Cheol Hee, Senior Research Fellow Tel: 044-415-5056 / e-mail: [email protected]

Ⅱ. Research Overview and Findings

□ Analysis of inequality in vocational education

◦ This study examined how characteristics related to the family and parental background of individuals affected their transition into the next stage of vocational education and conducted an empirical analysis of the performance of vocational education in the labor market.

□ Analysis of inequality in vocational training

◦ An empirical analysis was performed on the effects of participation in vocational training on inequality in wages and income by analyzing participants below the fourth bracket of wage income (applying the standards of the national scholarship income brackets), below the fifth bracket, and below the median income.

2. Research Findings

□ Household income and parental educational levels have a negative relationship with children’s enrollment at vocational high schools and continue to negatively influence their transition to higher education.

◦ In the initial stage of their entry into the labor market, the proportion of unemployed or temporary/day workers was high, but it was confirmed that they can transition to somewhat stable jobs in the long term.

□ Participation in vocational training had a positive (+) effect on the log monthly average wage and log monthly average income, which was found to be statistically significant, confirming that vocational training has a positive effect on resolving inequality in wages and income.

◦ The effectiveness of vocational training declined progressively in line with lower income brackets, and therefore more opportunities must be given to low-wage workers to participate in training programs to resolve inequality in wages and income.

Ⅲ. Conclusions and Policy Proposals

□ Vocational competency development systems and policies that consider equity should be designed, vocational competency development should be approached as a universal right and form of welfare, inequality through creating partnership should be addressed, standards for budgeting for talent development awareness should be developed, and an inequality index should be established.

□ Quality vocational education should be secured; the foundation for lifelong vocational education and training should be reinforced; the phenomenon of segregation by population group, industry, and occupation in vocational training should be resolved; inequality through selection and concentration should be improved; and infrastructure should be expanded to offer more opportunities and promote access.