Higher Education Reform in Korea - Policy Responses to a Changing Labor Market - Higher Education...

Higher Education Reform in Korea- Policy Responses to a Changing Labor Market -

Higher Education Reform in Korea- Policy Responses to a Changing Labor Market -

February 13, 2007

Moon Hee Kim

Ministry of Education & Human Resources DevelopmentRepublic of Korea

Moon Hee Kim

Ministry of Education & Human Resources DevelopmentRepublic of Korea

Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD) 2

CONTENTSCONTENTS

1Overview

2 The Change of Labor Market

3HE Policy Responses to Labor Market Change


1. Overview


1,642,119791,9282,434,04717843221Subtotal

1,483,180

93,061130

1,02764,658

63

405,25625,88187,374

273,417

1,888,436 25,881

180,435130

273,4171,027

64,65863

150

81

315

1

2511

6

1

1751114

113

151

UniversityTeacher collegeIndustrial Univ.Tech universityAir&corresponMiscellaneousCyber College in Company

788,14533,553821,69814213155Subtotal

886,926

65

39

3,600

33,553817,994

65

39

3,600

139

-

1

2

13152

-

1

2

Junior College

Technical college

Miscellaneous

Cyber College

PrivatepublicTotalprivatepublictotal

Number of studentsNumber of schools

Number of Students & Schools, HE<As of April 1, 2006>


Economic Development

1970198

0

199

0

199

7

199

8

200

0

200

4

200

5Population (Millions) 32 38 43 46 46 47 48 48

GNI per capita (US$)

650 2,324

7,751

10,363

6,843

9,675

14,193

16,291

Unemployment rate (%) 4.4 5.2 2.4 2.6 6.8 4.1 3.7 3.7

Labor force (Millions) 10 14 19 21 21 22 23 24

Labor force Participation rate (%)

47.6 59.0 60.0 62.2 60.5 60.7 62.1 62.0


Sequential Expansion of Education

Step-by-step attainment of universal education: primary secondary higher education

Enrollment by Educational Level

0

20

40

60

80

100

120

1970 1975 1980 1990 1995 2000 2003 2005

(%)

Primary

LowerSecondaryUpperSecondaryTertiary

Elite Mass Universal※ Trow, “Forms and Phases of Higher Education”: Elite Mass Universal


Economy Period Education

Take-off & export-driven growth(’60s); export acceleration(early ’70s)

1960s ~ mid-1970s

Expansion of primary and middle school education; emphasis on TVET(late ’60s)

Structural adjustment(late ’70s); from imitation to innovation(’80s)

mid-1970s ~ 1980s

Expansion of high school and higher education; strengthening of TVET

Pursuit of national competitiveness(early’90s); knowledge-based economy(late ’90s)

1990s~Present

K-12 quality enhancement; investment in higher education; reform for lifelong learning

Policy Foci for Economy and Education


2. The Change of Labor Market


Changes in Industrial Structure< Employment Structure >

81118

34

5063

18.7

8.8

14.3

22.5

27.6

20.4

2.62.9

6.2

7.4

7.57.9

25.532.4 37.3

47.161.5 65.5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1963 1970 1980 1990 2000 2005

Agriculture, f orestry, fi shery ManufacturingConstruction Service industry

※ 2015p: Agriculture 5.5%, Manufacturing + Construction 18.3%, Service 76.2%


42.5

34.0

25.6

21.1

18.6

13.0

12.7

11.7

11.4

10.3

54.4

62.2

69.3

71.7

71.9

73.2

72.9

67.5

64.4

57.2

3.1

3.8

5.1

7.2

9.5

13.8

14.3

20.8

24.3

32.5

0% 20% 40% 60% 80% 100%

1970

1980

1990

2000

2006

2017

2018

2026

2030

2040

0 ~ 14 15 ~ 64 over 65

Demographic changeLow

Fertility Ageing

Total fertility rate No. of birth

Demographic structure:age group


4.44

3.3 3.6 3.7 3.73.2

8.1 7.9

7

8 8.3 87.5

0

1

2

3

4

5

6

7

8

9

2000 2001 2002 2003 2004 2005 2006.11

전 체 15 - 29세

Unemployment rate(%)

Youth UnemploymentYouth(15~29세 ) Unemployment(’06.11), 7.5%(34.3mil.): 2.3times greater than the overall UR


Skill Mismatch / Low Satisfaction

A

B B

C C

Lack of qualified core talents

Lack of qualified core talents

Youth unemployment(343,000) Youth unemployment(343,000)

Labor shortage at SMEs(197,000)

SupplySupplyDemandDemand

Low level of satisfaction towards university graduates

※ ※ Ranked 50th out of 61 countries in terms of university education meeting Ranked 50th out of 61 countries in terms of university education meeting economic demands(IMD, 2006) economic demands(IMD, 2006)

Skill Mismatch in labor force


1.2

1.3

1.4

1.5

1.6

1.7

1.8

1992 1994 1996 1998 2000 2002 2003

1.5

1.6

1.7

1.8

1.9

2.0

2.1

(company size) Over 500 / 10-29

4-year college graduate / HS graduate

Regular / non-regular employment

Wage gaps by employment (ratio)Wage gaps by employment (ratio)Wage gaps by employment (ratio)Wage gaps by employment (ratio)

Wage gaps / Wage premium

Increasing non-regular employment widening a wage gap.University premium decreased until mid-90s but…


3.HE Policy Responses to Labor Market Change


Top-notch Top-notch professionalsprofessionals

(Graduate Schools)

Regional Regional innovation innovation initiatorsinitiators

(Universities)

Industrial Industrial engineers engineers

(Junior Colleges )

LB information LB information

Restructuring & competition

Restructuring & competition

PartnershipsPartnerships

Selected funding for specializationSelected funding for specialization

Vision and Goals


Major strategies

Improvement of HE/labor market information - manpower forecasting and assessment of skill requirements

Promotion of restructuring and competition through market discipline

- use of various incentives and disincentives

Funding based on “selection and concentration” - targeted funding for specialization and regional parity

Financing learners rather than providers - learner-oriented/demand-side financing (student loans)

Enhancement of networking and partnerships - with local governments and business community


Strengthening graduate programs in high value-added service areas: medicine, law, international finance, MBA, etc

Introduction of a new HE quality assurance system - Establishing the new quality assurance agency including the accreditation and certification process with global standard

- Financial provisions aligned with institutional evaluations

Clearing HE information - Inputs measures: PT ratio, unit expenditure, occupancy/ enrollment rate - Process/Outcome measures: persistence/graduation rate, employment rate, customer satisfaction, etc.

Financial incentives for reform and restructuring HE Inst. - Subsidies linked to amalgamation among institutions

※ Reducing enrollment by 50K students by 2009(18 inst. merged into 9, as of 2006)

HE Reform Initiatives


Major Programs to enhance the Quality

◈◈ 1st-Phase Brain Korea 21 (1999~2005, US$ 1.4billion)

▶Enhanced university research capacity; induced competition ※ ※ Number of BK21 science & tech SCI-level papers: 3,765(1998) Number of BK21 science & tech SCI-level papers: 3,765(1998) 7,947(2005) 7,947(2005)

▶Produced scientists of international competence ※ ※ Number of doctors in science & tech(1999~2005): 6,602Number of doctors in science & tech(1999~2005): 6,602

◈◈ 2nd-Phase Brain Korea 21 (2006~2012, US $2.3billion)

▶Cultivate 20,000 graduate-level best brains per year ※ ※ 74 universities, 244 project units, 325 project teams(2006, US$ 290million)74 universities, 244 project units, 325 project teams(2006, US$ 290million)

◈◈ New University for Regional Innovation (2004~2008, US$ 1.2billion) ▶Specialize local universities; nurture human resources readily adaptable to the industry 109 local universities, 130 project units ※ 109 local universities, 130 project units ※

◈◈ “Connect Korea” Project(2006~2010, 150million) ▶Strengthening partnership b/w universities and industry ▶Establishing Consortium b/w TLOs (Technology Licensing Offices) in univ.

(1US$ = 1,000KRW)


The government system changed since 2001.The government system changed since 2001.

Before Now

Name MOE MOE&HRD

Head Minister Deputy Prime Minister(DPM)

ScopeEducation, Adult Education

Education, LLL,Coordinating HRD Policy

Government Role

Coordinate HRD/VET polices among different line ministries.

- Ministerial Committee on HRD (chairperson : DPM) - The Committee is composed of 14 Ministers


Thank you [email protected]

Higher Education Reform in Korea - Policy Responses to a Changing Labor Market - Higher Education...

Documents

Transcript of Higher Education Reform in Korea - Policy Responses to a Changing Labor Market - Higher Education...