04 February 2011

Student employment

As UC Vice Chancellor Stephen Parker commented at the Commencement Ceremony earlier this week, many university students need to work in order to support themselves during their studies.

A new 46 page report by Rezida Zakirova & Cain Polidano of the National Centre for Vocational Education Research on Outcomes from combining work and tertiary study [PDF] comments that -
Working in some capacity is almost considered de rigueur for tertiary students. The reasons for working and the impact this has on both an individual's ability to complete their studies and on their post-study labour market outcomes are only recently receiving attention.

This is the first study in Australia to use multivariate analysis to examine motivations and education and employment outcomes from working while studying for both vocational education and training (VET) students (excluding apprentices and trainees) and higher education students aged 25 years and under. It is important to try and eliminate the effects of confounding factors — factors that are related to both working and outcomes—that distort the relationship between outcomes and work while studying. In contrast to descriptive statistics, the use of multivariate analysis allows us to determine whether any observed relationship between hours of work and course completion, for example, is due to hours of work or a third variable, such as socioeconomic background.

Using the 1995 and 1998 cohorts of the Longitudinal Surveys of Australian Youth (LSAY), this study investigates the motivations for and the education and employment outcomes from working while studying for both vocational education and training (VET) and higher education students.
The authors conclude that income is "an important motivating factor" -
those in receipt of income support are less likely to work while studying, although this is dependent on whether the student is still living at home.
They argue that -
• For those studying full-time, working impacts on completion — the more hours worked, the greater the effect. For example, working 16–24 hours a week reduces the completion rate by eight percentage points, while more than 24 hours reduces it by 14 percentage points.

• Finding work in a job considered a 'career' job while studying has a significant and positive impact on course completion for both VET and higher education students.

• For all tertiary students, being employed in the final year of study improves the chances of finding full-time employment, even three years after completing the course.

• For both full- and part-time students, the longer they have been employed in a job, the greater the likelihood of course completion, while past work experience also increases the likelihood of completion for full-time students (2.5 percentage points per year of employment). Perhaps this reflects that these students have better time management skills.
More specifically -
After controlling for differences between VET and higher education students, including academic ability, we find that full- and part-time VET students aged 25 and under in their first tertiary course are around ten percentage points more likely to complete than their higher education counterparts. The higher completion rates among this group of VET students may be due to a number of reasons, including the shorter duration of the courses, differences in the academic demands of the courses and differences in the flexibility and modes of course delivery. In general, the modularised nature of VET means that courses can be better tailored to individual training needs and are delivered in a greater range of modes, especially off-campus delivery modes.

After controlling for differences between those who choose different work and study combinations, including academic ability, course load, courses types and field of study, we find that for those aged 25 and under in their first tertiary course, working while studying can reduce the chances of completing, but it depends on the hours worked. For full-time students, we find that compared with those who do not work while studying, those who work up to eight hours (roughly a day) a week on average while studying are just as likely to complete, while those who work more than eight hours are less likely to complete; that is, those working 8.1 to 16 hours (roughly two days) a week, 16.1 to 24 hours (roughly three days) a week and those working more than 24 hours a week are five percentage points, eight percentage points and 14 percentage points less likely to complete, respectively. For part-time students, due to the small number of observations, the only comparison is between those who work fewer than 32 hours per week (part-time workers) and those who work more than 32 hours (full-time workers). We estimate that part-time students who work full-time are around 12 percentage points less likely to complete than those who work fewer than 32 hours per week. From tests performed, we find no evidence that these results are affected by self-selection bias — the presence of unobserved factors that affect both the choice of average hours worked and course completion.

We find that, generally speaking, there are no differences in the ability of full-time VET students and full-time higher education students to manage work and study. However, we find that part-time VET students who work full-time (work more than 32 hours per week on average over their course) are around 15 percentage points more likely to complete than part-time higher education students who work full-time. To complete a qualification part-time while working full-time requires considerable effort and application and the longer duration of higher education courses may make the required commitment more taxing. The relatively long commitment required to obtain a higher education qualification part-time may also mean that employers are less likely to support full-time employees who choose this education pathway.

Importantly, we find that, for both VET and higher education students, the type of work performed while studying has a significant bearing on completion. Full-time students who find a job they would like as a career while studying (around 12% of both VET and higher education students) are estimated to be around four percentage points more likely to complete study than those who work in a job that is not a career job, while the same effect for part-time students is around ten percentage points. A possible explanation is that most of those who find a career job while studying find work in professional jobs, especially in the areas of information technology, engineering, and architecture and building, which tend to require the attainment of a qualification for post-study employment. Therefore, the prospect of converting their jobs to ongoing employment after study may give them an added incentive to complete over those who work in non-career jobs. If this interpretation is correct, this result underlines the importance of creating more opportunities for students to gain experience working in jobs that they would like as a career.
Their modest assessment?
combining study and work does have significant effects on completion and future employment prospects. Too much work negatively impacts on study completion, but on the other hand work experience does benefit future job prospects. The ideal combination would be modest hours of work in a job relevant to a future career — but this will be difficult to achieve for many students.