Edition 42, March 2007

The value of completing a vocational education and training qualification

Completing a vocational education and training qualification does not necessarily translate into a higher wage, according to a new report released by the National Centre for Vocational Education Research.

The report, The value of completing a vocational education and training qualification, aimed to quantify the wage benefit of completing a vocational qualification. It concluded that a beneficial relationship was unclear because of the varied nature of the vocational education and training system. It did note that there are positive wage returns from completing a qualification for some students but not for others.

Amongst the main findings were:

  • Motivation for studying vocational education and training is varied and there is not a wage effect for all students.
  • Qualifications play a role in obtaining full-time employment. For females in particular, certificate III or higher qualifications are noticeably beneficial. For males, a certificate III is particularly beneficial.
  • Wages are related to highest educational qualifications with the highest returns to degrees, followed by diplomas and certificate IV qualifications. The returns are less clear for other qualifications.
  • Those with low-level qualifications (certificate II or below) do benefit from undertaking, and particularly completing, certificate III, IV or diploma qualifications. For those people, there is a clear pay-off in increased wages from completing the qualification.
  • People who already have a certificate IV or higher qualification do not receive higher wages from completing further vocational education and training qualifications at any level.

By contrast with these findings, graduates on the whole report that they receive wage increases as a result of their training.

To view The value of completing a vocational education and training qualification visit www.ncver.edu.au/publications/1721.html

Australian Vocational Education and Training: Research Messages 2006

This report is one of 29 research reports published by the National Centre for Vocational Education Research in 2006.

A summary of this report. along with the other 2006 publications can be found in the latest edition of Australian vocational education and training: Research messages 2006. This publication is produced annually and compiles the key messages from the centre's research reports.

The publication includes work done by National Centre for Vocational Education Research researchers, as well as work commissioned by the centre through the competitive grants program funded by the state, territory and Australian governments.

Each of the 29 key message summaries is grouped under one of the five themes�industry and employers, students and individuals, teaching and learning, the vocational education and training system, and vocational education and training in context.

Among the topics covered are:

  • skills shortages
  • careers and pathways
  • student achievements and outcomes
  • literacy and numeracy
  • regional issues

To view Australian Vocational Education and Training: Research Messages 2006 visit www.ncver.edu.au/publications/1723.html

This article originally appeared in Training Packages @ Work Jan-Feb 2007

 

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