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The Proposed Job-ready Graduate Package: a misguided arrow missing its target

Author

Listed:
  • Phil Lewis

    (University of Canberra)

  • Anne Daly

    (University of Canberra)

Abstract
In June 2020 the Minister for Education, Dan Tehan announced the Job-ready Graduate Package which aimed to provide the price signals the Coalition Government believes are necessary to generate the skills required in the Australian labour market in the post-COVID-19 world. This paper uses existing evidence to argue that the proposed Job-ready Graduate Package is likely to miss its mark, crucially with respect to having a medium-term impact on student choice. The paper draws on evidence of employment patterns of new graduates and established graduates in the Australian labour market to assess the economic argument that certain degree disciplines are more ‘job ready’ than others; the rationale behind ‘picking winners’ and the economic case for the proposed funding structure. The evidence from previous changes in the HECS/HELP rates, which were not as large as the proposed ones, suggests that they are unlikely to have a significant effect on student choices. This is not surprising given the wide range of factors that influence choice of discipline including student preferences, educational background, the employment and income of existing graduates, socio-economic background, career guidance and school experience, occupational expectations, psychological attributes and university entrance scores. The idea of ‘picking winners’ among disciplines for study to generate ‘job-ready’ graduates faces many difficulties in the uncertain post-COVID-19 world against a background of long-term changes in the economic structure of the economy. Working lives can last for over 40 years and people can move between occupations, adapting skills and retraining over time. Individuals are best placed to make these choices for themselves rather than relying on government direction.

Suggested Citation

  • Phil Lewis & Anne Daly, 2020. "The Proposed Job-ready Graduate Package: a misguided arrow missing its target," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 23(2), pages 231-251.
    • Handle: RePEc:ozl:journl:v:23:y:2020:i:2:p:231-251
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    References listed on IDEAS

    as
    1. Kelly, R. & Lewis, P., 2010. "The Change in Labour Skills in Australia over the Business Cycle," Australian Bulletin of Labour, National Institute of Labour Studies, vol. 36(3), pages 260-277.
    2. Anne Daly & Don Fleming, 2006. "A Cohort Analysis of the Private Rate of Return to Higher Education in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 9(3), pages 257-268, September.
    3. Jeff Borland & Michael Coelli, 2017. "Are Robots Taking Our Jobs?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 50(4), pages 377-397, December.
    4. Bruce Chapman & Tim Higgins, 2013. "The Costs of Unpaid Higher Education Contribution Scheme Debts of Graduates Working Abroad," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 46(3), pages 286-299, September.
    5. Michael Dockery & Sherry Bawa, 2018. "Labour Market Implications of Promoting Women’s Participation in STEM in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 21(2), pages 125-152.
    6. Chapman, Bruce & Ryan, Chris, 2005. "The access implications of income-contingent charges for higher education: lessons from Australia," Economics of Education Review, Elsevier, vol. 24(5), pages 491-512, October.
    7. Phil Lewis & Jee Young Lee, 2020. "The labour market outcomes of Australian Creative Arts degree holders," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 23(1), pages 21-42.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    2. Michael B. Charles & Marcus Harmes & Michael A. Kortt, 2022. "Is it Time to Rationalise Humanities Education in Australian Public Universities?," Economic Papers, The Economic Society of Australia, vol. 41(3), pages 202-214, September.

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    More about this item

    Keywords

    rates of return; higher education; job-ready; picking winners;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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