Melbourne Institute of Applied Economic and Social Research - Research Publications

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    Making ‘good’ choices: the impact of entitlement models on upskilling later in life
    VAN DE VEN, J ; Voitchovsky, S ; Polidano, C (National Centre for Vocational Education Research, 2017)
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    The Power of Self-Interest: Effects of Education and Training Entitlements in Later-Life
    POLIDANO, C ; Van de Ven, J ; Voitchovsky, S (Melbourne Institute of Applied Economic and Social Research, 2017)
    Education and training among the working-age population has become an increasingly important policy issue as working lives have lengthened and the pace of technological change has quickened. This paper describes the effects of a reform that replaced a supply-driven model, in which government selected the number and providers of publicly subsidised Vocational Education and Training (VET), with a demand-driven approach that broadened access to adult training and gave working-age individuals greater freedom of VET course choice. Difference-in-differences analysis reveals that the large-scale reform, which was introduced in the Australian state of Victoria from 2009, substantively increased participation in VET among the population aged 25-54, and corresponded with an improved match between VET courses taken and objective ex ante measures of labour market demand. Indeed, the scheme was so popular that it resulted in a budget over-run by 2012 of $400 million (AUD, on a total budget of $1.3 billion).