Publications or papers by CEET staff

Private Returns to Vocational Education and Training Qualifications Michael Long and Chandra Shah, NCVER 2008

This report presents estimates of the private rates of return for students studying for vocational education and training (VET) qualifications in Australia. Key findings are:

1. VET is a good investment for males undertaking diplomas or certificates III or IV and females undertaking diplomas, with rates generally exceeding 20% for those studying full-time.
2. For males, the rates of return are similar for full-time students doing diplomas and those completing higher-level certificates. While incomes are higher for those undertaking diplomas, the period of study is longer.
3. Rates of return are greater for part-time students because forgone earnings are lower.
4. An increase in tuition fees would reduce rates of return, but they remain healthy even under higher-fee scenarios.

Inter-firm Cooperation in Training, Richard Cooney and Michael Long, NCVER 2008.

Competition leads to benefits for consumers and drives firms to greater efficiencies in the production of goods and services. However, research and experience suggest that cooperation among firms provides benefits in a range of business service activities such as marketing or training services. Based on a survey of 600 firms in five manufacturing industries, this study investigated cooperation among firms in the provision of training. It explores various aspects of cooperation in these industries and identifies the policy implications of such training arrangements for the vocational education and training (VET) sector. It found

1. Less than 20% of Australian manufacturing firms participate in cooperative training arrangements. For those firms that do, such arrangements are only part of their overall training effort.
2. Cooperation in training occurs largely through pre-existing business-to-business relationships. Cooperative training arrangements help firms to reinforce these relationships, provide better-quality training and save money.
3. The VET sector currently has only a marginal involvement in cooperative training arrangements. To expand this role, training providers need to develop networks within the business community and arrangements capable of meeting the needs of a cluster of firms.

Diploma and Advanced Diploma Qualifications in the Community Services and Health Industries Gerald Burke, Andrew Smith, Tom Dumbrell and Michael Long, Community Services and Health Industry Skills Council 2008.

This study investigated several aspects of the value and funding of Diplomas and Advanced Diplomas in Community Services and Health (CSH). Some of the key findings are:

1. Employment in CSH has been rising rapidly and within CSH the proportion of persons with Diplomas or Advanced Diplomas has been rising.
2. Student numbers in Diplomas and Advanced Diplomas have been rising in CSH but declining in most other industries.
3. The mandating of minimum qualifications has been important in the increased employment of persons with Diplomas.
4. Diplomas and Advanced Diplomas have provided good returns to those who have undertaken them in CSH.
5. While the benefits are good it is not clear that this justifies introducing HECS type charges for these courses, noting that the majority of employees in CSH are women in part-time employment.
6. Most of the training for Diplomas is provided in government supported training.
7. The total revenue received for fee-for-service and for provision to international students is relatively small in CSH.

Approaches to measuring and understanding employer training expenditure Andrew Smith, Gerald Burke, Tom Dumbrell and Michael Long, NCVER 2008.

This project was concerned with improving the measurement and understanding of employer training expenditure. It involved consideration of training expenditure across firms in the four selected industries: construction, retail trade, manufacturing and health and community services (with support provided by the Community Services and Health Industry Skills Council).

The project found that good data on employer-funded training are extremely difficult to capture, not only because of the diversity by which employers meet their skill needs, but also because many employers do not keep accurate records. The research suggests how a national survey of employer training expenditure and practices might best be implemented in the future. It is argued that the collection of data based on employers’ approximations is better than having no data, especially where baseline data can be supplemented with in depth qualitative research.

The project provided insight into the factors affecting spending. It found that some of the drivers for investment in training—such as government employer incentives—are common across industries; others—such as compliance with regulations, shortages, labour turnover and exposure to competition—will vary, depending on specific industry circumstances. This research also suggests that the traditional view of high-spending large firms and their small low spending counterparts does not always reflect practice.