Companies Engaging in Dual VET: Do Financial Incentives Matter?

Approaches in Austria, Germany, Liechtenstein and Switzerland Options, Pros and Cons for Reform Processes

ibw-report, Zürich, 2019
Schmid K.

It is generally assumed that companies benefit from their engagement in dual VET – for example, from the productive work of apprentices (which in many cases even exceeds the total costs of training) or by saving hiring costs because of having well-trained future staff in-house. Such advantages would suggest that offering financial incentives for companies to engage in dual VET is unnecessary.

However, even in “classical” dual VET countries like Austria, Germany and Switzerland specific financial mechanisms (such as subsidies and training funds) exist that support companies in their engagement in VET. Therefore, what are the pros and cons of providing financial incentives to training companies?

ibw produced this discussion note for DC dVET to offer basic information and outline a set of key questions especially oriented for countries that try to foster company engagement in their VET-systems.