Article 2025

Finding the Right Track: Payoffs to Vocational Education Programs with Workplace Learning

Education Finance and Policy
Journal · Vol. 20 · Issue 2 · pp. 259-285
Abstract

Workplace learning in vocational education and training (VET) is often claimed to be an important metric to define “high-quality” programs, but outcomes beyond initial employment are not well understood. In this study, we estimate outcomes of upper-secondary-school VET programs with different levels of workplace learning in Australia—solely classroom-based, classroom-based with a workplace learning component, and training with an employment contract (apprenticeship/traineeships). Outcomes of students in each of these vocational programs are compared with outcomes of students who do not enroll up to seven years later. We use data from 2003, 2006, and 2009 Program for International Student Assessment participants who are tracked through an annual survey, adjusting for differences in student test scores, socioeconomic characteristics, post-secondary aspirations, and school and peer characteristics. Our results suggest short-term labor market benefits that disappear by year 7 out from school. However, among those who go onto further study after school, VET with workplace learning is associated with positive outcomes that persist to at least year 7. These include 5 to 10 percentage point higher rates of full-time employment, 7 to 10 percentage point higher reported rates of career job attainment, and 0.14 standard deviation higher job satisfaction. Suggestive evidence indicates that workplace learning may provide job market information and/or employer contacts that help students find good post-secondary pathways in education and training. © 2024 Association for Education Finance and Policy.

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Author Affiliations
School of Economics, The University of Queensland, Brisbane, QLD, Australia, IZA - Institute of Labor Economics, Bonn, Nordrhein-Westfalen, Germany, ARC Centre of Excellence for Children and Families over a Life Course, Australia
ARC Centre of Excellence for Children and Families over a Life Course, Australia, Melbourne Institute: Applied Economic & Social Research, Melbourne, VIC, Australia
Funding & Acknowledgements
National Centre for Vocational Education Research, NCVER
The authors would like to thank staff from the Australian Department of Education, Skills and Employment for their guidance and helpful comments on a report that this paper is based on. We would also like to thank Ronnie Semo from the National Centre for Vocational Education Research (NCVER), Peta Skujins from the Australian Apprenticeships and Traineeships Information Service, and Sam Rothman from the Australian Centre for Education Research for advice on Longitudinal Survey of Australian Youth (LSAY) data used in this project. This paper is based on a report funded by the Australian Department of Education, Skills and Employment. Analysis is conducted using data from the LSAY, which was provided by NCVER. The views and opinions expressed in this document are those of the authors and do not reflect the views of NCVER or the Australian Department of Education, Skills and Employment.
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