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Industry-based training and social inclusion Michael Long

Industry-based training and social inclusion Michael Long The contribution of VET to a more inclusive Australia 15th Annual National Conference Centre for the Economics of Education and Training Friday 28 October 2011 Ascot House 50 Fenton St, Ascot Vale, Melbourne. Preliminaries

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Industry-based training and social inclusion Michael Long

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  1. Industry-based training and social inclusion Michael Long The contribution of VET to a more inclusive Australia 15th Annual National Conference Centre for the Economics of Education and Training Friday 28 October 2011 Ascot House50 Fenton St, Ascot Vale, Melbourne

  2. Preliminaries • Industry-based training • Non-formal training – a structured course, taught in educational institutions or in the workplace, but not leading to a qualification • (30%) Any • (22%) Work-related • (9%) Employer-organised • Not apprenticeships or traineeships • Social inclusion • Equity based on family origins • Education & occupation of mother & father • 21 to 24 year-olds • The data • ABS Survey of Education & Training, 2009 (small sample)

  3. The importance of firm-based training • There may be a lot of it • Net direct expenditure on structured training during the 2001-02 financial year was $3,652.8 million, which is 1.3% of wages and salaries or 0.38% of GDP (although this is not quite NFT) • And in terms of hours . . .

  4. The importance of FBT • Translates into more across a lifetime • It is more closely related to work and therefore effect on labour productivity • There’s a suspicion that there is not enough of it • Apparently high returns • Unequal distribution • Poaching (among other concerns)

  5. An interlude: Schooling & SES • 21 to 24 year-olds, % with Year 12, 2009, excluding international students • 71.3% overall • 84.9% if fathers with Year 12 • 61.7% if fathers without Year 12 • ---------------------------------------------------- • 80.1% if fathers are managers • 88.3% if fathers are professionals • 69.3% if fathers are trades or tech • 83.0% if fathers are comm./pers serv. workers • 73.4% if fathers are clerical/sales • 57.2% if fathers are operators/labourers • 67.4% if fathers are not employed • 56.8% if fathers have lost contact

  6. Drivers of FBT • Workers • Full-time & permanent employment • Professionals & managers • Highly paid • High levels of education • Duration/age • Not from an ethnic minority • Firms • Large • Finance insurance & business services industry • Community, social and personal services industry • Public sector • High levels of technology/recent experience with tech change.

  7. Drivers of FBT • Economic environment • Competition ? Unemployment ? Skills shortages ? • Systemic characteristics • Is there a link between the level and distribution of training?Yes -- training is more evenly distributed in the countries with the highest participation rates. • Is there a link between levels of education and levels of training for countries?Yes -- training is higher in those countries in which educational attainment is higher. • Is there a link between the level of education and the distribution of training? Yes -- training is more evenly distributed in countries with higher levels of education. • OECD (1999a) Training of adult workers, OECD Employment Outlook.

  8. NFT & SES • 21 to 24 year-olds, fathers, 2009 • 30 22 9 overall • 33 21 10 with Year 12 • 28 22 8 without Year 12 • ---------------------------------------------------- • 33 25 10 managers • 37 25 10 professionals • 28 21 7 trades or tech • 38 24 12 comm./pers serv. workers • 27 17 3 clerical/sales • 28 20 8 operators/labourers • 29 22 2 not employed • 27 19 7 lost contact

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