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The Power of Self-Interest: Effects of Education and Training Entitlements in Later-Life

Author

Listed:
  • Cain Polidano

    (Melbourne Institute: Applied Economic and Social Research, the University of Melbourne)

  • Justin van de Ven

    (Melbourne Institute: Applied Economic and Social Research, The University of Melbourne and National Institute of Economic and Social Research, London)

  • Sarah Voitchovsky

    (National Institute of Economic and Social Research, London and Graduate Institute, Geneva)

Abstract

Education and training among the working-age population has become an increasingly important policy issue as working lives have lengthened and the pace of technological change has quickened. This paper describes the effects of a reform that replaced a supply-driven model, in which government selected the number and providers of publicly subsidised Vocational Education and Training (VET), with a demand-driven approach that broadened access to adult training and gave working-age individuals greater freedom of VET course choice. Difference-in-differences analysis reveals that the large-scale reform, which was introduced in the Australian state of Victoria from 2009, substantively increased participation in VET among the population aged 25-54, and corresponded with an improved match between VET courses taken and objective ex ante measures of labour market demand. Indeed, the scheme was so popular that it resulted in a budget over-run by 2012 of $400 million (AUD, on a total budget of $1.3 billion).

Suggested Citation

  • 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.
    • Handle: RePEc:iae:iaewps:wp2017n12
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    File URL: http://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0007/2358484/wp2017n12.pdf
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    References listed on IDEAS

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    Cited by:

    1. 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.

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    More about this item

    Keywords

    Adult education; voucher; entitlement; Vocational Education and Training (VET); demand-driven subsidy;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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