Impact of Vocational Education and Training on Economy

Research Proposal

Impact of Vocational Education and Trainings on Economy

TABLE OF CONTENTS

Chapter-1

Introduction:

Vocational training has a great impact on economic development of any country yet it is not considered to be as important as general studies because it is not been measured properly and have not many tools to measure. Therefore this study will be carried out in attempt to understand impact of vocational training and education on economic development. Vocational training generally refers to training for a specific job or employment. It centers on practical rather than theoretical skills Vocational training is also known as job-oriented education. Vocational education helps students and even professionals to be specialized in their respective fields. That’s why they have more chances of getting the job as compared to their peers so it is beneficial for the economic growth, vocational training also helps employees to perform better as they acquire great learning experience. Many organizations prefer persons who have vocational training as they have all the skills to perform assigned tasks rather than informally trained persons. It provides the connection between the theoretical world and the practical world.

Until now all vocational training programs were carried out in professional institutes or on job trainings but now a day’s online vocational training programs are getting quite famous they are also known as distance learning programs they also help persons who are seeking jobs a competitive advantage as a result of that they get jobs which in turn helps in the economic development of any country.

Vocational education and trainings also helps in sporting roles in professionals such as medical, information technology, engineering, arts, business administrations and architecture. Vocational training and education take place at different levels as it varies from region to region for example in some regions it starts from higher secondary in others it starts from inter or bachelors level etc

Although it seems that vocational education and training has very positive impact of individual that in turn positively affect the economy but this hypothesis needs evidence therefore this paper will help in testing the hypothesis

1. Statement of the problem:

Economy can be measured in many ways of them is the employment level in the country, if there are more skilled people in the country they often get jobs more easily that micro level change can be projected throughout the economy at macro level therefore; This study will help to identify how vocational studies and trainings has an impact on economy.

1. Objective of the study:

Objective of this study will be to see the relationship between the vocational training and education on economic development of any country there may be a positive or direct relationship or may be the inverse of negative relationship:

• Vocational training and education facilitate economic development
• Vocational training and education refrain from economic development

1. Significance of the study:

This study helps to investigate the extent that economic development;

• Can be effected by vocational trainings and education positively
• Can be effected negatively
• General studies are more important than vocational education and trainings

1. Hypothesis:

• H1:        Vocational training and education has a direct relationship with economic development
• H2:         Vocational training and education helps economy to boost
• H3:        Micro level development can be possible with vocational training and education which in turn helps the macro level economy.

1. Limitations:

• The first limitation is that the study only deals with the employees who got vocational education and training and are employed by some organizations
• The second limitation may be the number and location of the persons; due to lack of resources this study only covers the limited in Rawalpindi.

Chapter-2

Literature review:

As the human capital theory proposes that the capital is not something that is in the form of money in the bank or cash, the trainings, courses and schoolings are also a form of capital because they increase productivity (Becker, 1962) further in this theory it is proposed that the vocational trainings that are partially or completely company or industry oriented rather than the general education which can be generalized in any company or industry may helps to increase profitability of a company or an industry Another growth theory states that the employees with vocational or specialized trainings are tend to innovate and share their knowledge with other employees which helps companies (Barro and Sala-I-Martin, 1995). Vocational training become very important part of economic development because of its impact on both micro and macro economics (Wirth, 19723; McNabb, 1997). According to (Budría and Díaz-Giménez, 2007) people who got training usually get higher amounts of income and other benefits.