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Three decades of policy development and change has significantly altered the operation of the New Zealand tertiary education sector. Rather than policy that supports the important autonomous characteristics of tertiary education, successive governments have put in place policy levers focused on disciplining what is seen as an 'unruly' subject - the tertiary education sector and in particular its staff. The policy approaches of successive governments have imposed a market-led framework on tertiary education; have created a single 'tertiary education sector'; and, have heightened the government's 'strategic steering' of the sector. The result is that the primary focus of the tertiary education sector has moved from that of broad-based social, human, scientific, and economic progress, to the much narrower goal of economic advancement. [The authors] argue the changes experienced have been detrimental to the sector and the nation. By examining the major policy trends since the mid-1980s [the authors] aim to contribute to the current understanding of how the 'rules of the game' have shaped the nation's tertiary education system, and propose a change of direction for the sector.

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This is the first of a new series designed to encourage informed discussion on essential issues in vocational education and training in Australia. This paper considers market forces and their effects on vocational education. The author looks at the current economic approach to vocational education and training (VET) policy, the elements of market-based policy, the politics and economics of training markets, issues in implementing the training market and strategic directions.

He finds that there is an extensive market in vocational education and training and that market-based policy initiatives are certain to increase. He asserts that there is a need for greater policy creativity in VET, in addition to policy initiatives related to the traini g market. A more complex and rewarding focus may be discussion of VET as an element of formal education in Australia and particularly the future integration of school, vocational and university education. Show less

This paper argues that the market for education and training services in Australia is not merely a policy option, but a structural reality, encompassing public and private providers, and including child care, kindergarten, schools, TAFE, universities, adult community education, industry skill centres and commercial and enterprise training providers. There is competition in the market for education and training services from the various providers.

The author discusses several issues:

If the reality of the Australian market for education and training services were to become more competitive, would vocational education and training be more or less efficient or effective as a result?

In what ways, if any, is it desirable that vocational education and training become more market-responsive?

What are some of the undesirable implications of vocational education and training becoming more market-responsive? Show less

Given the changing policy environment in vocational education and training (VET), the National Centre for Vocational Education Research (NCVER) considered it timely to look at the policy developments and participation trends over the last 20 years. This occasional paper examines two broad policy trends, the extension of the apprenticeship and traineeship system, and the opening up of the training market, as well as three specific policy case studies: incentive payments for employers of apprentices and trainees; accelerated apprenticeships; and entitlement models. The paper also examines the high-level trends in VET participation and the labour market, and in doing so, reflects on how the changing policy environment has influenced participation trends over the past 20 years. The paper concludes with some observations and reflections about the policy trends in VET, the tensions in the system created by these developments, and some thoughts about the future direction of VET policy.

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The case for reforming the way we do vocational education and training in Australia is strong. Training is important to wider social and economic policy questions - but it is not done well enough at the moment and this needs to change. The Victorian and Federal Governments are making big changes, which represent real potential progress. The demand-side proposals hold real promise. The best argument will deal with the supply-side consequences, especially for existing public providers. The challenges for governance, workforce, and infrastructure are real and the policy needs to evolve rapidly and effectively to take a sophisticated account of these challenges without compromising the benefits of a demand-side approach. The key is integration of these different objectives into a well designed solution - not balancing these different objectives with competing solutions.

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A critical analysis is developed of the dominant meanings of value in marketised higher education. In policy terms, this has become informed by the logics of the measured market whereby value has become synonymous with economic return and institutional accountability. The notion of value is one which permeates many discussions on the purpose of higher education and the perceived benefits it confers onto individuals and society as a whole. This, however, remains largely implicit and unearthing the specific meaning of value (and values) clearly presents challenges. This article critically examines a variety of concepts relevant to discussion of the value of higher education, including the relationship between value and quality, consumerism, goods and performativity. In each case, it unpacks their meanings and implications for the relationship between students and institutions, particularly at a time when this is seen to be increasingly transactional. It then outlines an alternative value framing to the utilitarian 'value for money' so prevalent in much market-driven policy.

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This infographic looks at how participation in vocational education and training (VET) has changed over the past 20 years, and considers how policy has influenced some of these trends. These graphs are based on the occasional paper 'Trends in VET: policy and participation' by Georgina Atkinson and John Stanwick [indexed in VOCEDplus at TD/TNC 125.05].

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In the last three decennia, many governments have introduced market mechanisms in education. They have done so by enhancing parental choice and encouraging school competition, through policies like abolishing catchment areas, creating voucher programmes and setting up charter schools. These market mechanisms have given rise to fierce debates in both political and scientific circles. However, most prior reviews of research literature in this area have concluded that the effects of market mechanisms in education are small, if they are found at all. This review tries to answer the question why that is the case, by analysing the causal pathways that link market mechanisms to educational outcomes and by reviewing the empirical evidence for each step along those causal pathways. The findings of this review point to the need for a nuanced and qualified discussion about market mechanisms in education. What market mechanisms mean in actual practice strongly depends on (local) contexts, while the impact of market mechanisms is related to other policies impacting on parental choice behaviour as well as actions taken by schools.

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In 1990, Australian governments embarked upon a radical policy experiment to create an 'open training market', comprising public Technical and Further Education (TAFE) and private providers. Underwritten by government, TAFE had been the dominant post-school provider of trade and technical training, and 'second chance' education for disadvantaged groups since the early 1970s. From the early 1990s, however, vocational education and training (VET) was progressively redesigned within a market framework, and TAFE institutes have since been required to compete with private providers for government funding on a more 'level playing field'. Justified by policy makers solely on the basis of economic theory, the construction of an 'open training market' has proceeded in the absence of any evidential support, and on the untested assumption that market-based competition produces better outcomes than government planning and coordination. To rectify the knowledge deficit and promote informed policy debate, this thesis investigates and evaluates the impact and outcomes of market reforms in vocational education and training from a national perspective.

The findings indicate that market reform in VET has produced mixed outcomes. Overall, the research casts doubt on the efficacy and desirability of markets in VET, and raises questions about their potentially adverse consequences from a public interest perspective. Policy alternatives are discussed, and areas for further research are proposed. The thesis concludes by arguing the need for a more creative and judicious mix of state planning and market forces; one that serves the needs and interests of all stakeholders and preserves the distinctive character and mission of the public TAFE sector. However in the wake of more recent market reforms, as discussed in the epilogue to the thesis, TAFE's market share and financial base have shrunk to the point where its future viability is now in question.

This thesis comprises two parts: (1) a single research monograph, entitled 'Trading places: the impact and outcomes of market reform in vocational education and training', published by NCVER in 2006 and indexed in VOCEDplus at TD/TNC 84.12; and (2) an epilogue.

Edited excerpts from publication. Show less

This report attempts to develop training indicators for vocational education and training (VET) policy and providers. It begins with recent developments in the training system and the training market, followed by information relating to the national strategy and key performance measures (KPMs). Major Commonwealth, state and other users of training indicators since the 1970s are described and classified. Issues and directions for training indicators are discussed in terms of: the national planning background; the place of indicators in VET planning; the market for training indicators; needs and gaps; classification, forecasting and resourcing issues; and the aptness of indicators for the VET climate. The report develops summary propositions for good practice in the use of training indicators, for increasing the range of training indicators, for improving the implementation of KPMs and for improving the dissemination of training indicators for VET planning. Show less