Work in Progress
Analysis of private returns to VET
Summary
- Item:
- 10418
- Title:
- Analysis of private returns to VET
- Type:
- Managed research project
- Project no:
- NR07507
- Status:
- Finished
- Date commenced:
- 14 May 2009
- Contact:
- Michelle Circelli
- phone: 08 8230 8646
- email: michelle.circelli@ncver.edu.au
- Principal researcher:
- Wang-Sheng Lee
- University of Melbourne
- Related program:
- VET participation and labour market outcomes
Purpose
This project will investigate the private returns to VET. It will utilise new data sets, will update existing estimates and compare them with the estimates of alternative/competing education routes.
Approach
Quantitative
Research questions
This project will address the following questions:
- How do returns to VET qualifications in Australia vary by type of qualification and gender?
- What are the returns to VET qualifications in Australia for more mature age students who obtain their qualifications later in life? How do they compare to the returns to students who obtain their qualifications when they are younger?
- Have the returns to VET qualifications in Australia changed over time during the period 1993 to 2005?
Methodology
Using the ABS Surveys of Education and Training (1993, 1997, 2001 and 2005), this project will employ two possible econometric modelling techniques:
(i) Multivariate regression techniques: where the outcomes are discrete (for example, whether an individual works full-time or not, or has a permanent or casual job), probit estimation can be undertaken; where the outcomes are continuous (such as wages or some occupational outcome measures), least squares regression can be used.
(ii) More recently developed program evaluation techniques such as propensity score matching will also be used. This method is designed to provide a better answer to the ‘what if’ question. Propensity score matching is a semi-parametric alternative to regression and allows us to relax the implicit linear functional form assumption in regression.
Organisations
Located within the Faculty of Economics and Commerce at The University of Melbourne, The Melbourne Institute of Applied Economic and Social Research is a leading research organisation specialising in applied economic and social research with an international reputation for producing high quality research related to Australian policy issues. Its mission is to undertake world-class independent and impartial applied economic and social research and policy analysis on major issues relevant to Australia; provide highly valued products and services for business, government and community groups; and provide research training for emerging economic and social researchers.
