Experiencing financial hardship is detrimental to both individuals and the community. For some, trying to break out of this situation can be extremely difficult as they may not have access to, or be lacking, the skills or resources that could help. However, education can help with research showing increasing the level of education and training is an effective means of reducing the likelihood of experiencing financial disadvantage. Using data from the Household, Income and Labour Dynamics in Australia survey this study looks at how having post-school qualifications may protect someone from falling into, and help get out of, financial disadvantage. Using four measures of financial disadvantage, the study finds that post-school qualifications to reduce the risk of experiencing financial disadvantage but to varying degrees.
Having a choice of transition pathways from school to work, further education or training gives young people the best chance of success. Using the 1995 cohort of the Longitudinal Surveys of Australian Youth, this study looks at the role post-school qualifications play in the year-by-year movement between labour market states by young people. Higher post-school qualifications are found to increase the chances of being permanently employed and provide protection against being persistently unemployed or out of the labour force.