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 House 50 Fenton St, Ascot Vale, Melbourne

2. Preliminaries ♦Industry-based training o 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 o Not apprenticeships or traineeships ♦Social inclusion o Equity based on family origins o Education & occupation of mother & father o 21 to 24 year-olds ♦The data o ABS Survey of Education & Training, 2009 (small sample)

3. The importance of firm-based training  There may be a lot of it o 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) o 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 o Apparently high returns o Unequal distribution o 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 9overall 33 21 10with Year 12 28 22 8without Year 12 ---------------------------------------------------- 3325 10managers 372510professionals 28217trades or tech 382412comm./pers serv. workers 27173clerical/sales 28208operators/labourers 29222not employed 27197lost contact