Increasing education levels are contributing to improved productivity.
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 conference paper was presented to the Third International Congress on Technical and Vocational Education and Training, 13–16 May 2012, in Shanghai. It argues that there are two key factors behind Australia's good record of employment for young people: high levels of post-school education with the consequence that there is not a large cohort of people in their mid-to-late teens flooding on to the labour market; and a flexible education system which gives individuals multiple choices.
This paper aims to explain the extent to which variation in apprenticeship completion rates can be attributed to factors relating to 'culture' of the employer and apprentice.
This report investigates attrition in the trades by comparing the rate at which tradespeople leave their occupation with that of professionals. It also determines whether attrition is influenced by economic conditions, and if a trade can provide a good start to a career in the professions. The report concludes that attrition in the trades is no higher than in the professions; the rate of leaving particular occupations may vary, but overall the results between the two are very similar. The economic climate also makes little difference to the attrition rate.
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.
This paper updates an earlier paper by Karmel and Mlotkowski and looks at how the probability of getting a job, in addition to wages, impacts on completion rates. It finds that for trade apprentices the premium (or extra wage completing an apprenticeship brings) attached to becoming a tradesperson is a significant factor, whereas for non-trade trainees the training wage matters more. It also finds that the probability of employment for an apprentice or trainee on completion is greater than if they drop out; this particularly affects completion rates for trades and females in non-trade occupations. Finally, the economic downturn significantly increased the attractiveness of apprenticeships and traineeships.
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.
This paper was prepared for the Australian Government's National Resources Sector Employment Taskforce, which was created to investigate the extent to which skill shortages might impact on the development of the resources sector. It applies historical apprenticeship commencement rates to population projections to provide an estimate of the number of tradespeople likely to be working in the resources sector between 2010 20 at a detailed level and by region.
This paper aims to provide a picture of the occupations in the community services and health industry, and how the workforce obtains the required skills. The authors argue that planning for the industry should concentrate on occupations specific to the industry and those which require high skill levels. Findings suggest that the qualification levels of community services and health workers have increased substantially over the past decade. Furthermore, community services and health vocational education and training courses are well targeted, with most graduates finding employment in the industry.
The purpose of this paper looks at the fundamental issue of whether VET does improve the employment prospects of the groups in question. It exploits data from the Student Outcome Survey to construct samples that proxy three welfare groups and models the post-training employment outcomes.
This report examines the costs that both employers and apprentices incur for undertaking training in the plumbing and electrical industries. The importance of understanding costs is fundamental. Employers will not take on apprentices if the cost is too high, and prospective apprentices will not undertake an apprenticeship if the future benefits (increased wages) do not outweigh the immediate costs to them. The research found that the apprenticeship model involves a substantial financial commitment from employers, and apprenticeships are more attractive to young people and will remain unattractive to older people, unless the premium paid to qualified tradespeople is substantial.
This paper presents some thoughts on the concept of the Tasmanian Polytechnic, drawing on a range of research mostly undertaken by NCVER. It considers a number of 'goals' that are relevant to judging the success of the endeavour, including Year 12 retention and the completion of Australian Qualifications Framework qualifications, before making a number of observations on relevant issues.
This paper presents a series of stylised facts from the research literature on vocational education and training and older people. It includes the following topics: Education is front end loaded; VET is really important in providing older people a second chance; Increases in educational participation of older persons have been very modest; Education makes a large difference to workforce engagement of older people; Qualifications obtained later in life appear to pay off, at least in terms of workforce engagement; ...but training is no panacea; Skills learnt on the job are very important; and Attitudes of both employers and employees create barriers for training for older people.
The ageing society has been attracting the attention of policy-makers in Australia and in many other countries. This paper considers the labour market for the traditional trades in Australia over the next 40 years and investigates whether the ageing society will pose a workforce problem. The broad conclusion is that the ageing society will significantly impact on the size of the potential trades workforce, but that this is unlikely to result in shortages. Rather, any shortage is more likely to occur if the trades lose their attractiveness relative to other occupations. Moreover, the age distribution of the trades workforce will remain largely unaltered.
One of the most striking features of the modern world is its changing demographic profile. In almost any policy arena, the issue of demographic change (or ageing) sits alongside globalisation, climate change and the knowledge revolution as areas which are transforming societies, including the ways in which we organise and go about our work activities. This significant and worldwide phenomenon motivated an international meeting of a number of technical and vocational education and training (TVET) research agencies, hosted by NCVER in October 2006. This publication is the result of this meeting and contains the presented papers and comments by discussants. What emerges from the papers is a picture of a worldwide trend that touches many aspects of TVET and the labour market, but one which needs to take into account the very different economies and societies of the world.
Vocational education and training (VET) is much more important to young people than might be immediately apparent. This paper focuses on how young people participate in vocational education and training, what they study and their outcomes. Of particular note is the importance of VET for those young people who do not proceed on the conventional academic path of 12 years of school followed by university.
The growth of apprenticeships and traineeships between 1997 and 2003 is examined in this report, with a specific focus on age and sex. The research found apprenticeships and traineeships changed dramatically during this period, with the range of occupations widening, part-time apprenticeships and traineeships now common, and apprenticeships and traineeships no longer the preserve of the young male.
Presented to the Second Sino-Australia Vocational Education and Training Conference at Chongqing on 3-5 August, 2005, this paper looks at linkages between the Australian vocational education and training system and the labour market--the formal legal and administrative structures, general skills development, and the dynamics of the labour market.