Figure 4-1: Unemployment per education level in the <strong>Amsterdam</strong> region (%)Source: Calculated from O+S <strong>Amsterdam</strong> (2008e) (working-age individuals available for labormarket, <strong>Amsterdam</strong> region, figure for 2007), (unemployed, <strong>Amsterdam</strong> metropolitan area, figurefor 2008)Notice that some (temporary) unemployment will always be present, because that goes withchanging jobs or getting a first job. Although more factors influence unemployment rates, it isclear from Figure 4-1 that there is an inverse relation between unemployment rates and educationlevels. From the perspective of the (regional) performance of higher education institutes, thefigure can be interpreted in more than one way. First, getting a higher education degree meansgood labor market prospects. So the institutes seem to be doing a good job. However, theworking-age individuals available for the regional labor market may have gotten their educationin another region. In the <strong>Netherlands</strong>, information on the career trajectories of WO and HBOgraduates is poorly available (OECD, 2008d: 32).Second, not getting a higher education degree implies worse labor market prospects. Theunemployment rate in the group of people with only primary education is ten times as large as inthe group of people with tertiary education. Here, there is evidently an imbalance. In the figure,people should move to the right: more people should get education levels higher than basiceducation. Participation in higher education, in other words, should increase. The OECDmentions increasing the number of secondary school students who go on to university and otherhigher education institutes as one way of making better use of knowledge and skills in theRandstad area (OECD, 2007a: 133). Ethnic minorities are underrepresented in tertiary education(OECD, 2007a: 150). For example, over the period 2006-07, 25- 29% of the population(depending on the precise area) consisted of non-Western foreign Dutch nationals (allochtoon),while 17% of all people who got their higher education diploma were non-Western foreign Dutchnationals (Statistics <strong>Netherlands</strong> Statline, 2009d).For the past 30 years, the population dynamics of large cities in the <strong>Netherlands</strong> (including<strong>Amsterdam</strong>) have been characterized by suburbanization and urban sprawl. Increasing welfareand declining transportation costs are the driving forces behind this process. What also hascontributed to suburbanization are the often crowded housing markets of cities, as a result ofwhich housing prices are driven up. Fewer people will then be able to afford housing. <strong>Amsterdam</strong>in particular faces this problem severely. One of the byproducts is the development of a divided84
housing market, on the ‘buying market’ housing prices are upwardly moving – thereby drivingpotential buyers off the market – whereas on the ‘renting market’ students as well aseconomically and socially disadvantaged groups queue up for cheap social housing.Due to the above phenomena the growth of the city population is lagging behind that of suburbanareas. On the medium to long term this implies that employment will shift to the suburban areasas well, since evidence indicates that employment follows population development and not viceversa (Janssen et al., 2006: 20-23). Moreover, suburbanization and urban sprawl are selectivebecause they apply to the relatively well-off, leaving the economically and socially disadvantagedgroups in the cities. A disproportionate share of the economically and socially disadvantaged isconstituted by minority groups with a non-Western origin (non-Western foreign Dutch nationals).Not surprisingly therefore is that <strong>Amsterdam</strong> has a higher than average share of non-Westernforeign Dutch nationals compared to the rest of the <strong>Netherlands</strong> and that this group on averagefaces higher unemployment rates. Hence, whereas in the <strong>Amsterdam</strong> region the share is 25-29 %(depending on the exact region), the Dutch average is around 11 %. In the <strong>Netherlands</strong> as awhole, the share of people aged between 15 and 65 who are receiving social benefits is 14.3% fornative Dutch nationals and 25.2% for non-Western foreign Dutch nationals. In <strong>Amsterdam</strong>,18.1% of native Dutch nationals aged between 15 and 65 are receiving social benefits, whereasfor non-Western foreign Dutch nationals this is 26.2% (Statistics <strong>Netherlands</strong> Statline, 2005c).Good labor market prospects are one side of the story. The other side is how easy it is forbusinesses to recruit the labor they need. The European Cities Monitor 2008 (Cushman &Wakefield, 2008) gives information on business location decisions. In 2008, <strong>Amsterdam</strong> rankedfifth in terms of recruiting qualified staff (of 34 cities in Europe, including Instanbul). So also inthis respect the HEIs seem to be doing well, with again the qualification that the working-ageindividuals available for the labor market may have gotten their education in another region.Also, in the short and medium run the demand for tertiary education may be larger than supply,especially concerning technology, teaching and health care (Jonge and Berger, 2006: 23-24). TheOECD mentions that labor shortages are to be expected because of the aging of society and alsobecause of a weak labor market participation of notably single parents, low-skilled women,partially disabled persons and inactive migrants (OECD, 2008c). None of the proposed solutionsspecifically involves institutes of higher education. The impact of early tracking and ofinflexibility between tracks on the educational attainment of immigrants’ children is said to beadverse (OECD, 2008a: 56, also see Elk et al., 2009).4.3 Localising the learning process4.3.1 Interaction between HEIs and regional needsIn general, in the <strong>Netherlands</strong> private education institutes are more demand-driven than publicinstitutes. UAS are directed more towards the regional labor market than research universities,given that the latter aim for a more generalist preparation and research. At the same time, UAShave a lower intensity of doctoral training among their staff (OECD, 2008a: 33). The downside ofUAS’ local employment connections is a lower national, European and global connection(OECD, 2008a: 64). According to the OECD public authorities in the <strong>Netherlands</strong> have failed tocreate a policy framework in which tertiary education institutions can fully exploit autonomythrough innovation and client-oriented specialization (OECD, 2008a: 34). For example, the socalled‘macro-effectiveness test’ (macro-doelmatigheidstoets) gives institutes less control over(local) programmes. Hence, regional links are limited to begin with. Platform Arbeidsmarkt enOnderwijs (PAO, platform labor market and education) is a public-private partnership that strivesfor well-functioning labor markets in the <strong>Amsterdam</strong> region (PAO, 2009). Especially themunicipality and the business sector seem to be active in the platform. VU University <strong>Amsterdam</strong>for instance is not a partner. PAO’s focus is more on primary and secondary education than onhigher education, because imbalances are more obvious at the lower levels of education.85
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Please cite this paper as:SEO Econo
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2.3 Higher education and the labor
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6.3 Mechanisms to promote regional
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Table 4-4: Completion rates of diff
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LSCA Life Sciences Center Amsterdam
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such as regional authorities and th
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1. OVERVIEW OF THE REGION1.1 Introd
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the southEastern part of Amsterdam
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elatively bad accessibility of the
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metropolitan area exceeded that of
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egion suffer from one of the follow
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Figure 1-7: Dropouts secondary educ
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Figure 1-9: Employment in Amsterdam
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high-tech sectors is relatively hig
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1.4.4 Labor market indicatorsTable
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The central government is responsib
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implemented. There is also an admin
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mobility in the world is slackening
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ecause they are better informed abo
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REFERENCESAalders, R., A. Bakkeren,
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EZ Amsterdam (2006), “Research Bu
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MinOCW (2007a), “The Education Sy
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SER (2008), “Duurzame Globaliseri
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Versleijen, A., van der Meulen, B.,
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Institution City Type ofHEIANNEX B:
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Groningenculture)Hogeschool Amsterd
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ANNEX C: KEY ECONOMIC INDICATORSTab
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ANNEX E: REGIONAL PARTNERSHIPS OF A
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AmsterdamUniversity CollegeOther re
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ANNEX F: BUSINESSES REPRESENTED IN
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GLOSSARYBologna DeclarationForeign