Investments in Informal Education: Problems in Measuring Returns and Efficiency in Social Policy

Abstract

The paper presents a critical review of theoretical and empirical approaches to the estimation of investments in informal education. Informal education includes short-term courses, intensive programs and trainings, and master classes, which do not always involve the issuing of a certificate or diploma. This informal education may not result in a formal qualification, recognised professional skills, or the opening of a private practice. First, we analysed economic approaches to the quantitative estimation of investments in education and its application in empirical studies of job-related training in enterprises. Informal education can make an impact on both general and firm-specific human capital, but measuring the return on investment in informal education is not easy. At present there is no methodology nor appropriate data that could be adjusted in terms of the effectiveness of investments in informal education (except estimations of returns on job-related training in enterprises). We compared existing methods and tools for measuring adult competencies that are applied abroad and in Russia. Opportunities and limitations for quantitative estimations of returns on investments in informal education were analysed. Today in Russia there is no system for collecting information on informal education and adult competencies. Attempts to introduce an independent assessment of qualifications in Russia missed data about informal education and individual job characteristics. Consequently, it was concluded that regular monitoring of informal education is needed. In our opinion, monitoring could combine economic and sociological approaches in the methodology of estimation the returns on informal education: a multidisciplinary view, research optics with 'switching scales,' the use of the advantages of quantitative and qualitative methods of analysis.