Dual TVET education in Chile: why do companies train students?

Abstract

ABSTRACT This paper analyses the costs and benefits of dual training programmes for companies in Chile. The model has three main components: (1) the costs that arise during the programme (training, student labour, administrative, and educational supplies), (2) the benefits that companies receive during the programme in terms of student’s productivity, and (3) the potential benefits that companies can obtain in hiring and adjustment savings if students are hired after the programme. Using an online survey, we estimate that Chilean companies that participate incur net costs of US$3,200 per student per year in training; however, most companies declared to be satisfied with dual training. We simulate two scenarios under which dual training is cost effective. Public policies to promote early adjustment such that students arrive at companies better prepared and can allocate more time to productive tasks should be considered to decrease the net cost of training.