The power of self-interest: Effects of subsidies for adult education and training

Publication date: 31 Aug 2017 | Publication type: NIESR Discussion Paper | Theme: Education & Labour | NIESR Author(s): Van de Ven, J | External Author(s): Polidano, C; Voitchovsky, S | JEL Classification: I22, I28, H31 | NIESR Discussion Paper Number: 480

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 broadened access to public subsidies for adult Vocational Education and Training.  Difference-in-differences analysis reveals that the large-scale reform, which was introduced in the Australian state of Victoria from 2009, increased participation in VET among the population aged 25-54, and corresponded with an improved match between subsidised VET courses taken and 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). 

Keyword tags: 
adult education
Vocational Education and Training (VET)
demand-driven subsidy

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