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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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Article provided by The University of Melbourne, Melbourne Institute of Applied Economic and Social Research in its journal Australian Economic Review.

Volume (Year): 43 (2010)
Issue (Month): 4 (December)
Pages: 389-408

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Handle: RePEc:bla:ausecr:v:43:y:2010:i:4:p:389-408
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