Long-Term Outcomes from Australian Vocational Education

47 Pages Posted: 17 Nov 2016

See all articles by Cain Polidano

Cain Polidano

University of Melbourne - Faculty of Economics and Commerce, Melbourne Institute of Applied Economic and Social Research

Chris Ryan

University of Melbourne

Date Written: November 16, 2016

Abstract

This study uses longitudinal data from the Household, Income and Labour Dynamics in Australia (HILDA) survey to study the long-run effects of completing vocational education and training (VET) on a set of labour market outcomes (employment, wages, earnings, hours and occupational status). It uses two novel approaches. First, it uses fixed effects regression methods to estimate effects from acquiring new qualifications. Second, it measures effects of acquiring qualifications at lower, the same and at higher levels than previously attained. This is important, since one half of the VET qualifications observed being completed in the HILDA data are at the same or lower levels. The use of fixed effects generates estimates that differ from those found previously in the literature, at least by gender. Here, the estimated improvements in outcomes for females following the completion of a VET qualification are often larger than they are for males. In the longer term, these results point to considerable stability in estimated effects – significant effects apparent in the first year after course completion tend to remain evident up to five years later. Completed qualifications that are not higher than those already held by individuals do not consistently improve the labour market outcomes studied here, but may provide other benefits.

Keywords: Vocational Education, Qualification Outcomes, All Qualifications

JEL Classification: I21, I26, J21

Suggested Citation

Polidano, Cain and Ryan, Chris, Long-Term Outcomes from Australian Vocational Education (November 16, 2016). Melbourne Institute Working Paper No. 35/16. Available at SSRN: https://ssrn.com/abstract=2870762 or http://dx.doi.org/10.2139/ssrn.2870762

Cain Polidano

University of Melbourne - Faculty of Economics and Commerce, Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

Chris Ryan (Contact Author)

University of Melbourne ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

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