Viw Magazine

Business Coach

.

  • Written by Andrew Norton, Higher Education Program Director, Grattan Institute
Once qualified, men who did a popular engineering-related VET course often worked in high-paid fields such as construction or manufacturing. from shutterstock.com

Prime Minister Scott Morrison said in recent days that “TAFE is as good as university”, and in many cases leads to better pay.

TAFE plays a vital role, but for most university students, a TAFE course is not going to increase their income. University graduates usually have higher rates of pay and employment than non-graduates.

But a new report from the Grattan Institute – Risks and rewards: when is vocational education a good alternative to higher education? – looked at the employment outcomes for students leaving school with a lower Australian Tertiary Admission Rank (ATAR) (their main entry criteria into most undergraduate university programs).

It found men with a lower ATAR have options among vocational educational and training (VET) courses that can get them a job faster, and often higher earnings, than if they do a university degree. But these VET options are less attractive for women. And women who choose them often have poor outcomes, such as being denied a job in a male dominated industry like engineering.

ATAR is not everything. It does not perfectly predict university results or outcomes after university. But compared to graduates with a high ATAR, graduates with a lower ATAR have, on average, worse academic results, lower rates of high-skill employment and less earnings.

The Grattan Institute report looked at VET courses offered as a potential alternative to university. Especially once the income effects of lower ATAR are taken into account, the report found some bachelor degrees led to lower earnings than some VET diplomas and Certificate III/IV courses.

How ATAR can affect employment outcomes

Over the last decade, more school leavers have been starting university with an ATAR below 70. Before an enrolment boom that began in 2009, about 20,000 school leavers with ATARs between 30 and 70 started university each year. In more recent years, the reported number is around 34,000.

But the true figure is higher, as universities don’t always record an ATAR when it is not used to admit the student.


Read more: More students are going to university than before, but those at risk of dropping out need more help


Employment outcomes usually improve over time, but slow career starts can have long-term consequences. The Grattan Institute report used data from the Longitudinal Surveys of Australian Youth (LSAY), which tracks young graduates up to age 25.

Graduates with a lower ATAR are more likely than those with a higher ATAR to fail subjects during their degree. But fail rates differ between courses. In education and nursing, for instance, graduates with ATARs below 60 failed 5% of all the subjects they took. This was half the fail rate of disciplines such as science, engineering, IT and commerce.

With fails on their academic transcripts, graduates with a lower ATAR have more trouble finding full-time work within four months of finishing their studies, and the jobs they find are less likely to use their skills.

But when it comes to employment options, the course matters more than the ATAR. In the months after graduation, humanities, science and commerce graduates with higher ATARs struggle more than nursing or education graduates with lower ATARs to find a job.

ATAR and annual income are connected within each university course. For example, male science graduates with ATARs of 90 earn about 13% more than graduates with ATARs of 60.

Men’s VET options could make them better off

To be considered a potential better choice, a course must plausibly interest the student and have better employment outcomes. There is no point telling a potential performing arts student an accounting diploma would improve their job prospects.

Few people are interested in both these courses. University applications, which often include preferences for multiple courses, reveal what other fields students are interested in.

One in five of all men whose first preference university course was science had a lower preference for engineering. Science is a high-risk university course, as rapid enrolment growth has led to graduates significantly outnumbering jobs.

Young people with lower ATARs considering science would receive a university offer, but could potentially earn more enrolling in a VET diploma (as shown in the chart below).

Similarly, about one in five men whose first preference is arts (another high-risk field) have a lower preference for commerce.

For men, with a lower ATAR, a commerce-related VET diploma would give them better employment prospects than an arts degree. These and other possible alternatives can be seen in the chart. Often a diploma is acquired after first completing a Certificate III/IV course.


Read more: We need to change negative views of the jobs VET serves to make it a good post-school option


Women should stick with uni

Women make up the majority of students who enrol into university with a lower ATAR. For them, a commerce diploma can sometimes be a good alternative to university, too. But otherwise women’s realistic choices differ from men’s – for both positive and negative reasons – in ways that make VET less attractive.

A positive reason is that two popular courses for women with lower ATARs – education and nursing – have good outcomes. Rates of professional employment for graduates of both courses are high across the ATAR range.

Nurses and teachers with higher ATARs who went to university tend to earn more than those with lower ATARs but the differences aren’t large enough to not recommend a bachelor degree over a VET course (as the chart shows).

A negative reason why vocational education is less attractive for women is that they show little interest in engineering-related fields that are popular for men. Once qualified, these men often work in construction, manufacturing, electrical and maintenance related fields.

But even when women have the relevant qualifications they often work in other occupations that pay less but offer more flexible working conditions.

VET fields popular with women, such as child care, nursing, aged care and hospitality have a large number of job vacancies, but don’t pay as well as most graduate occupations.

Vocational education does get overlooked in careers advice. But VET is less attractive for women than for men, if pay is a significant factor in course choice. Women have been a majority of university students since 1987. Given the nature of the labour market, it is not hard to see why.

Andrew Norton does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

Authors: Andrew Norton, Higher Education Program Director, Grattan Institute

Read more http://theconversation.com/if-you-have-a-low-atar-you-could-earn-more-doing-a-vet-course-than-a-uni-degree-if-youre-a-man-121624

Revolutionizing Manufacturing: Unleashing the Full Potential of Stereolithography SLA 3D Printing

3D printing is changing how we make things, and Stereolithography (SLA) 3D printing is at the center of this change. Making models or prot...

Impact of Early Intervention on Hearing-Impaired Children

Early intervention plays a crucial role in shaping the lives of children with hearing impairments, providing them with the necessary suppo...

The Role of a Mortgage Broker in Handling Your Reverse Mortgage

Choosing the right reverse mortgage can be a daunting task, especially given the multitude of options and complex terms involved. A mortga...

Showcasing Craftsmanship in Sydney's Furniture Outlets

Seeking an appropriate furnishing is the first step towards accomplishing perfect interior layout in Sydney, a colourful city where styl...

Blue Stars FX Review – The Benefits of Using an Advanced Online Brokerage Firm

If you are a seasoned trader in the dynamic world of crypto trading, then you understand that it is crucial to have a trading platform by ...

Maxon365 Review - (maxon365.com) Is Maxon 365 Scam or a Proper Broker?

The crypto trading arena is considered to be highly volatile and unpredictable. Hence, to keep up with the changing dynamics of the market...

Scrap Copper Secrets: Unlocking Melbourne's Pricing Patterns

In the heart of Melbourne's bustling urban landscape lies a hidden world of scrap metal, where discarded treasures await their chance at r...

Setting Up The Home Game Room Of Your Dreams

Everybody likes to play games, for some, it's a pleasant occasional pass time, for some, it's a regular good-natured competition with frie...

What is the best Ethernet Cable to satisfy your networking needs?

Whether you are a seasoned IT professional or a novice enthusiast, understanding something about ethernet cables can significantly impact ...

The Top 10 Reasons to Purchase a Makeup Mirror

Investing in a quality makeup mirror is a game-changer for anyone who applies makeup, grooms, or simply wants a better view when taking ca...

Understanding TPD Claims: Navigating the Process and Securing Your Entitlements

Total and Permanent Disability (TPD) claims serve as a vital resource for individuals facing significant injuries or illnesses that hinder...

Brisbane Personal Injury Lawyers: Advocates for Your Rights and Compensation

When you've suffered a personal injury in Brisbane, navigating the legal landscape can be daunting. That's where Brisbane personal injury ...

How Does Salary Sacrificing Save Money?

By strategically sacrificing salary, you save money through tax benefits and boosted take-home pay. Lower taxable income means less tax ...

Tips for Reducing Mould in Your Caravan

To prevent mould in your caravan, ensure good ventilation by opening windows and using fans. Keep airflow constant, especially when cookin...

Navigating the Aftermath: What to Do When You're in a Car Accident

Car accidents can be unsettling and chaotic experiences, often leaving individuals overwhelmed and unsure of what steps to take next. Howe...

Smart Mirrors: Revolutionizing Your Morning Routine with High-Tech Features

In today’s fast-paced world, technology seamlessly integrates into every aspect of our daily lives, aiming to enhance convenience and ef...

Brisbane to Face Another Gribbly Winter

Queensland has experienced another wet, hot summer, and in Brisbane, this means populations of pest species will be booming. For many pest...

Common Household Electrical Problems

Ever had a rough day just because you had an electrical problem at your residential property?  Imagine a fine morning, when you are read...

Important Instructions for Australians Living in Camper Trailers

Living in a camper trailer offers Australians a unique way to embrace adventure and freedom while exploring the vast and beautiful landsca...

Maintaining Your Mini Digger: Tips for Longevity and Performance

If you're a proud owner or operator of a mini digger in Australia, you understand the importance of keeping your equipment in top-notch co...

Tomorrow Business Growth