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The effect of VET completion on the wages of young people

By Nicolas Herault, Rezida Zakirova, Hielke Buddelmeyer

Amongst recent initiatives aimed at lifting Australia’s productivity has been a push for a greater number of course completions in both the vocational education and training and higher education sectors. With this, it could be assumed, come benefits for the individual such as better job opportunities and higher wages. Using the 1995 and 1998 cohorts of the Longitudinal Surveys of Australian Youth, this study looked at whether participating in or completing a post-secondary education qualification led to wage benefits for young people. The study finds that not only completing a post-secondary course but participating in one results in higher wages.