VET research for industryAVETRA 15th Annual Conference

12-13 April 2012Canberra

Tom Karmel

Six areas or relevant research Value of completing an

apprenticeship/traineeship Role of wages in completion rates of

apprentices/trainees Value of completing a VET qual Match between training and the labour

market Role of VET in innovation VET and workforce development

Six areas or relevant research Value of completing an

apprenticeship/traineeship Role of wages in completion rates of

apprentices/trainees Value of completing a VET qual Match between training and the labour

market Role of VET in innovation VET and workforce development

Difference between expected wage in alternative employment and wage during training

Trades

-15000

-10000

-5000

0

5000

10000

15000

20000

25000

30000

1 101 201 301 401 501 601 701 801 901Observation

$ (a

nnua

l)

Difference between expected wage in alternative employment and wage during training

Non-trades (male)

-20000

-15000

-10000

-5000

0

5000

10000

15000

20000

25000

30000

1 101 201 301 401 501 601 701 801 901 1001 1101 1201

Observation

$ (a

nnua

l)

Difference between expected wage in alternative employment and wage during training

Non-trades (female)

-20000

-10000

0

10000

20000

30000

40000

1 101 201 301 401 501 601 701 801 901 1001 1101 1201 1301 1401 1501Observation

$ (a

nnua

l)

Wage premium on completion of an apprenticeship or traineeship, excluding part-timers and existing workers

Trades

Mean ($)% above

zero

Engineering, ICT and science technicians 6 329.1 100.0Automotive and engineering 13 724.4 100.0Construction trades workers 16 867.8 100.0Electrotechnology and telecommunications trades workers 23 232.1 100.0Food trades workers 6 228.8 94.5Hairdressers 631.7 73.4All other trade occupations 6 158.7 100.0Total 12 105.0 96.4

Wage premium on completion of an apprenticeship or traineeship, excluding part-timers and existing workers

Non-trades (male)

Mean ($)% above

zero

Non-trades:Managers and professionals 7 937.6 91.7Community and personal service workers -832.7 46.4Clerical and administrative workers 4 911.2 82.9Sales workers -5 088.3 8.6Machinery operators and drivers 1 319.0 54.6Labourers 2 551.9 70.2Total 1 624.1 59.8

Wage premium on completion of an apprenticeship or traineeship, excluding part-timers and existing workers

Non-trades (female)

Mean ($)% above

zero

Managers and professionals 5 363.9 93.3Community and personal service workers 6 428.1 92.7Clerical and administrative workers 6 007.1 95.9Sales workers -4 426.5 6.5Machinery operators and drivers 6 452.7 100.0Labourers -12 667.2 0.0Total 2 403.9 68.2

Six areas or relevant research Value of completing an

apprenticeship/traineeship Role of wages in completion rates of

apprentices/trainees Value of completing a VET qual Match between training and the labour

market Role of VET in innovation VET and workforce development

Summary of regression of probability of completing an apprenticeship or traineeship, trades and non-trades, 2008 and

2010 combinedTrades Non-trades

(male)Non-trades

(female)

Wedge between expected wages in alternative employment and wages during training

Wedge between expected wages on completion and expected wages in alternative employment

Wedge between probability of employment on completion and probability of alternative employment

Difference between surveys (2010 survey = 1; 2008 survey = 0)

Six areas or relevant research Value of completing an

apprenticeship/traineeship Role of wages in completion rates of

apprentices/trainees Value of completing a VET qual Match between training and the labour

market Role of VET in innovation VET and workforce development

Employed after trainingActualPayoff

0

1

2

3

4

t

0 10000 20000 30000 40000 50000

Salary full timeActualPayoff

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

t

0 10000 20000 30000 40000 50000

Further studyActualPayoff

0

1

2

3

4

5

6

7

8

t

0 10000 20000 30000 40000 50000

Employment status after trainingPopulation

pay-off = 21.7%

Employment status before training:

Unemployed

pay-off = 34%

Employment status before training:

Not in labour force

pay-off = 108.3%

Employment status before training:Employed

pay-off = 2.8%

Further StudyPopulation

pay-off =122.7%

Employment status before training:Employed

pay-off = 99%

Employment status before training

Unemployed

pay-off = 158.1%

Employment status before training

Not in labour force

pay-off = 217.5%

Salary full timePopulation

pay-off = 0.3%

Qualification level:Cert I & II

pay-off = -0.6%

Qualification level:Cert III & IV

pay-off = 1.8%

Qualification level:Diploma & above

pay-off = 6.6%

Six areas or relevant research Value of completing an

apprenticeship/traineeship Role of wages in completion rates of

apprentices/trainees Value of completing a VET qual Match between training and the labour

market Role of VET in innovation VET and workforce development

Matches between intended and destination occupations for graduates who are employed, 2007

Intended occupation of training activity

Match at major group

Match at sub-major

group

% %Managers 18.8 14.1Professionals 35.4 21.5Technicians and trades workers 66.7 60.6Community and personal service workers 53.3 43.8Clerical and administrative workers 50.3 23.0Sales workers 51.6 45.2Machinery operators and drivers 39.5 26.6Labourers 33.6 25.5Total 47.8 36.6

Courses sorted by the proportion of graduates reporting that the training is of little or no relevance to their destination occupation: graduates for whom intended and destination

occupations do not match at the sub-major group level, 2007

Intended occupation of training activity %

Arts and media professionals 63.6Sports and personal service workers 45.0ICT professionals 36.7Road and rail drivers 35.3Hospitality workers 34.0Food trades workers 8.3Automotive and engineering trades workers 7.8Cleaners and laundry workers 5.4*Construction trades workers 3.5Electrotechnology and telecommunications trades workers 3.2*

0 10 20 30 40 50 60 70 80 90 100

13 Specialist Managers

89 Other Labourers

51 Off ice Managers and Program Administrators

14 Hospitality, Retail and Service Managers

85 Food Preparation Assistants

22 Business, Human Resource and Marketing Professionals

21 Arts and Media Professionals

23 Design, Engineering, Science and Transport Professionals

82 Construction and Mining Labourers

26 ICT Professionals

59 Other Clerical and Administrative Workers

72 Mobile Plant Operators

71 Machine and Stationary Plant Operators

53 General Clerical Workers

74 Storepersons

31 Engineering, ICT and Science Technicians

27 Legal, Social and Welfare Professionals

24 Education Professionals

84 Farm, Forestry and Garden Workers

41 Health and Welfare Support Workers

83 Factory Process Workers

44 Protective Service Workers

12 Farmers and Farm Managers

43 Hospitality Workers

45 Sports and Personal Service Workers

73 Road and Rail Drivers

55 Numerical Clerks

54 Inquiry Clerks and Receptionists

61 Sales Representatives and Agents

62 Sales Assistants and Salespersons

36 Skilled Animal and Horticultural Workers

39 Other Technicians and Trades Workers

32 Automotive and Engineering Trades Workers

42 Carers and Aides

35 Food Trades Workers

33 Construction Trades Workers

34 Electrotechnology and Telecommunications Trades Workers

81 Cleaners and Laundry Workers

(%)

Specific Generic

Courses ranked from most specific to most generic, 2007

Six areas or relevant research Value of completing an

apprenticeship/traineeship Role of wages in completion rates of

apprentices/trainees Value of completing a VET qual Match between training and the labour

market Role of VET in innovation VET and workforce development

Six areas or relevant research Value of completing an

apprenticeship/traineeship Role of wages in completion rates of

apprentices/trainees Value of completing a VET qual Match between training and the labour

market Role of VET in innovation VET and workforce development