The purpose of this research is to examine whether, for those who have left full-time education, a low-skill job provides them with a good start to their working lives. It was found that starting out in a low-skill job gives lower payoffs than starting out in a high-skill job. Five years after leaving full-time education, the wage penalty (after conditioning on education and other characteristics) still exists but this scarring effect diminishes over time. However, any job is better than having no job.
This report compares the outcomes for young people who complete certificate I or certificate II qualifications with the outcomes for similar individuals who are not participating in post-school education and training, using data from the Longitudinal Surveys of Australian Youth.
Pre-vocational programs, including VET in Schools, are increasingly providing a pathway into traineeships in the same way that pre-apprenticeships are an established route into apprenticeships in the traditional trades. This report uses data from the 2010 Apprentice and Trainee Destination Survey and finds that the benefits of pre-vocational programs are mostly apparent for early school leavers (especially those who leave school after Year 11) and trainees in sales, clerical and administrative, and labouring occupations.
Looking at apprentice and trainee data and employment data back to 1995, we find that declines in apprentice commencements lead declines in total trades employment by four quarters, whereas declines in trainee commencements appear to lag declines in employment in non-trade occupations. Based on this historical relationship, the reduction in apprentice and trainee numbers suggested a much larger decline in employment than eventuated. The low proportion of redundant apprentices who were able to resume training is concerning. However, because apprentice and trainee commencements rebounded so quickly, we anticipate only a minor interruption to the supply of tradespeople.
In this 30 minute podcast, Steve Davis talks with Tom Karmel, Erica Smith and Damian Oliver on insights from research into apprenticeships.textInterested in the story behind the numbers, Tom discusses the findings from his work on individual completion rates that show occupation and employers' size matters, with the implication being that the relationship between employer and apprentice is critical. Erica talks about the all too often unspoken expectations of apprentices and employers—the psychological contract. She finds that writing down these expectations at the start of an apprenticeship does help all parties. Damian examines whether pre-apprenticeship programs deliver on their promise of improved retention rates and finds their impact varies by occupation and prior education level. Implications for policy-makers and training providers are drawn out throughout the podcast.
Pre-apprenticeship programs have attracted a great degree of interest from employers and training providers as one means of increasing apprentice satisfaction and completion rates, by providing an introduction to the trade. We test this proposition using data from the 2010 Apprentice and Trainee Destination Survey. We find that the impact of pre-apprenticeships varies with occupation and prior education level. Pre-apprenticeships increase the likelihood of completion for apprentices in the construction, food and electro-technology trades but reduce completion rates among those already holding a certificate III or higher qualification and some other categories of apprentices.