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The Labour Market Effects of Vocational Education and Training in Australia

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  • Wang‐Sheng Lee
  • Michael B. Coelli

Abstract

We provide estimates of the effects of completing a Vocational Education and Training (VET) qualification on several labour market outcomes: earnings from employment, plus the probabilities of being employed, being employed full-time if employed, and being employed in a permanent position. Estimates are provided for 1993, 1997, 2001 and 2005. The estimation methodology is based on matched comparisons of persons at each level of VET qualifications separately with Year 12 completers and non-completers. We find that compared to Year 12 completers, there is little benefit from obtaining certificate level qualifications, but there are positive employment and earnings outcomes associated with obtaining diploma level qualifications. Compared to non-completers of Year 12, however, there are benefits from obtaining any kind of VET qualification, including the lower level Certificate I/II qualifications.
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Suggested Citation

  • Wang‐Sheng Lee & Michael B. Coelli, 2010. "The Labour Market Effects of Vocational Education and Training in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 43(4), pages 389-408, December.
    • Handle: RePEc:bla:ausecr:v:43:y:2010:i:4:p:389-408
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    Cited by:

    1. Andrea Albanese & Lorenzo Cappellari & Marco Leonardi, 2021. "The effects of youth labour market reforms: evidence from Italian apprenticeships," Oxford Economic Papers, Oxford University Press, vol. 73(1), pages 98-121.
    2. Justin van de Ven & Cain Polidano & Sarah Voitchovsky, 2017. "The power of self-interest: Effects of subsidies for adult education and training," National Institute of Economic and Social Research (NIESR) Discussion Papers 480, National Institute of Economic and Social Research.
    3. Cain Polidano & Justin van de Ven & Sarah Voitchovsky, 2017. "The Power of Self-Interest: Effects of Education and Training Entitlements in Later-Life," Melbourne Institute Working Paper Series wp2017n12, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    4. Cain Polidano & Chris Ryan, 2016. "Long-Term Outcomes from Australian Vocational Education," Melbourne Institute Working Paper Series wp2016n35, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    5. Werner Eichhorst & Núria Rodríguez-Planas & Ricarda Schmidl & Klaus F. Zimmermann, 2015. "A Road Map to Vocational Education and Training in Industrialized Countries," ILR Review, Cornell University, ILR School, vol. 68(2), pages 314-337, March.
    6. Celeste K. Carruthers & Christopher Jepsen, 2020. "Vocational Education: An International Perspective," CESifo Working Paper Series 8718, CESifo.
    7. Mohd. Imran Khan & Pallavi Wats & Jannet Jacob Farida, 2023. "Gender Differences in Returns to Self-employment in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(1), pages 239-266, March.
    8. Cain Polidano & Justin Ven & Sarah Voitchovsky, 2021. "Are Broad-Based Vouchers an Effective Way to Support Life-Long Learning? Evidence from an Australian Reform," Research in Higher Education, Springer;Association for Institutional Research, vol. 62(7), pages 998-1038, November.
    9. Lerman, Robert I., 2013. "Skill Development in Middle Level Occupations: The Role of Apprenticeship Training," IZA Policy Papers 61, Institute of Labor Economics (IZA).

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