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Contracting out publicly funded vocational education: A transaction cost critique

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  • Phillip Toner

Abstract

Contracting out publicly funded vocational education and training (VET) in Australia to private providers has been accompanied by persistent concern at decline in the quality of training. Using transaction cost economics, this outcome is ascribed to the characteristics of publicly funded VET as a commodity and the conditions under which it is privately produced and consumed. The article concludes that, in general, publicly funded VET does not meet the minimum conditions for efficient contracting out. The economic and social consequences of inadequate quality VET provision are potentially severe.

Suggested Citation

  • Phillip Toner, 2014. "Contracting out publicly funded vocational education: A transaction cost critique," The Economic and Labour Relations Review, , vol. 25(2), pages 222-239, June.
    • Handle: RePEc:sae:ecolab:v:25:y:2014:i:2:p:222-239
    DOI: 10.1177/1035304614533624
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    References listed on IDEAS

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    1. Horne, Ralph & Dorignon, Louise & Lawson, Julie & Easthope, Hazel & Dühr, Stefanie & Moore, Trivess & Baker, Emma & Dalton, Tony & Pawson, Hal & Fairbrother, Peter, 2023. "Informing a strategy for circular economy housing in Australia," SocArXiv trhvs, Center for Open Science.

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    More about this item

    Keywords

    Contracting out; transaction cost economics; vocational education and training;
    All these keywords.

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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