VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

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VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel

Transcript of VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

Page 1: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

VET research for industry

AVETRA 15th Annual Conference12-13 April 2012

Canberra

Tom Karmel

Page 2: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra 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

Page 3: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra 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

Page 4: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

Difference between expected wage in alternative employment and wage during training

Trades

-15000

-10000

-5000

0

5000

10000

15000

20000

25000

30000

1 101 201 301 401 501 601 701 801 901

Observation

$ (a

nnua

l)

Page 5: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

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)

Page 6: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

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)

Page 7: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

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

Page 8: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

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

Page 9: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

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

Page 10: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra 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

Page 11: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

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)

Page 12: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra 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

Page 13: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

Employed after training

ActualPayoff

0

1

2

3

4

t

0 10000 20000 30000 40000 50000

Page 14: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

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

Page 15: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

Further study

ActualPayoff

0

1

2

3

4

5

6

7

8

t

0 10000 20000 30000 40000 50000

Page 16: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

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%

Page 17: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

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%

Page 18: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

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%

Page 19: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra 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

Page 20: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

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 14.1

Professionals 35.4 21.5

Technicians and trades workers 66.7 60.6

Community and personal service workers 53.3 43.8

Clerical and administrative workers 50.3 23.0

Sales workers 51.6 45.2

Machinery operators and drivers 39.5 26.6

Labourers 33.6 25.5

Total 47.8 36.6

Page 21: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

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 63.6

Sports and personal service workers 45.0

ICT professionals 36.7

Road and rail drivers 35.3

Hospitality workers 34.0

Food trades workers 8.3

Automotive and engineering trades workers 7.8

Cleaners and laundry workers 5.4*

Construction trades workers 3.5

Electrotechnology and telecommunications trades workers 3.2*

Page 22: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra Tom Karmel.

0 10 20 30 40 50 60 70 80 90 100

13 Specialist Managers

89 Other Labourers

51 Office 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

(%)

Specif ic Generic

Courses ranked from most specific to most generic, 2007

Page 23: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra 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

Page 24: VET research for industry AVETRA 15 th Annual Conference 12-13 April 2012 Canberra 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