New data reveals benefits of tertiary education and training

Results from the Employment Outcomes of Tertiary Education (EOTE) feasibility study on the post-study earnings of those who recently participated in tertiary education and training were released today by Statistics New Zealand.

Young students who left institution-based tertiary education in 2003 with a bachelor's degree earned 51 percent more than those who gained a certificate at level 1 to 3 (upper-secondary level equivalent) three years post-study. Students who left with level 5 to 7 certificates or diplomas earned 16 percent more, and leavers with level 4 certificates earned 4 percent more. Students who left with a master's degree earned 16 percent more than those who left with a bachelor's degree. Earnings for leavers who completed a qualification increased 30 percent between their first and third year of employment.

The earnings of individuals who left workplace-based industry training during 2003–05 with a level 4 qualification or higher (such as a national certificate) improved more than the earnings of those with similar characteristics who did not undertake industry training. This improvement in earnings four years after starting training was much greater for males who were aged 15–24 years when training started (11 percent), than for males aged 25 years and over or females (3 percent and 2 percent respectively). Gaining a level 3 qualification improved the average earnings of males by 2 percent, but not those of females.

Completing a level 1 or 2 qualification did not improve the earnings of trainees compared with those who did not undertake training.

The EOTE feasibility study has successfully created new information on the labour market experiences of recent participants in tertiary education and training. The feasibility study was a joint project undertaken by Statistics NZ, the Ministry of Education, the Department of Labour, Inland Revenue, and the Tertiary Education Commission.

For further information see: Employment Outcomes of Tertiary Education Feasibility Study, Prototype Statistics on Employment Outcomes of Tertiary Education, What Do Students Earn After Their Tertiary Education?, Does Workplace-based Industry Training Improve Earnings?.