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The Labour Market Effects of Vocational Education and Training in Australia


  • Wang‐Sheng Lee
  • Michael B. Coelli


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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  • 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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    References listed on IDEAS

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    Cited by:

    1. Andrea Albanese & Lorenzo Cappellari & Marco Leonardi, 2017. "The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships," DISCE - Working Papers del Dipartimento di Economia e Finanza def057, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    2. 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.
    3. 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.
    4. Lerman, Robert I., 2013. "Skill Development in Middle Level Occupations: The Role of Apprenticeship Training," IZA Policy Papers 61, Institute for the Study of Labor (IZA).
    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.

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