Article 2014

Contracting out publicly funded vocational education: A transaction cost critique

TP
Toner, Phillip
Economic and Labour Relations Review
Journal · Vol. 25 · Issue 2 · pp. 222-239
Abstract

Contracting out publicly funded vocational education and training (VET) in Australia to private providers has been accompanied by persistent concern at decline in the quality of training. Using transaction cost economics, this outcome is ascribed to the characteristics of publicly funded VET as a commodity and the conditions under which it is privately produced and consumed. The article concludes that, in general, publicly funded VET does not meet the minimum conditions for efficient contracting out. The economic and social consequences of inadequate quality VET provision are potentially severe.

Keywords

Author Keywords

vocational education and training Contracting out Transaction cost economics

Index Keywords

Author Affiliations
Department of Political Economy, The University of Sydney, Sydney, NSW, Australia
Funding & Acknowledgements
No funding information
References 10 References
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4 Report to National Vet Equity Advisory Council, (2011)
5 Vet Quality Project, (2013)
6 Trading Places the Impact and Outcomes of Market Reform in Vocational Education and Training, (2005)
7 Annual Report 2012 13, (2025)
8 undefined
9 Stronger Simpler Smarter Esos Supporting International Students, (2010)
10 Brown, Tony, From Union Inspired to Industry Led: How Australian Labour's Training Reform Experiment Turned Sour, Journal of Industrial Relations, 48, 4, pp. 491-505, (2006)
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