1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Improving School-to-work Transitions in New Zealand

The NZ labour market is among the most flexible in the OECD, and outcomes for its young people have been among the best. However, labour-market opportunities are heavily determined by initial education, where New Zealand’s system is also successful and innovative in many ways. Average PISA results are among the OECD’s highest, but the dispersion of performance is also high, indicating a sizable group of underachievers. Those in disadvantaged groups tend to have poor scholastic outcomes. These initial educational handicaps show up in higher drop-out rates and youth joblessness, greatly limiting these youths’ future life chances. Indeed, intergenerational persistence in educational and employment outcomes appears very high. From both a social and economic point of view, it will be essential to develop more fully the human capital of the fast growing demographic group of ethnic minorities. Better teaching quality is needed, with more attention devoted to diversity of student needs and learning approaches to keep children in school. A related problem is the apparently large divergence between the nature of skills supplied by the education sector and the skills demanded by employers. A greater role for youth apprenticeships could help to raise skill levels while aligning them better to the economy’s needs. All this has an important bearing on the government’s ambition to secure strong and sustainable growth with rising living standards and equal opportunities for all. This Working Paper relates to the 2013 OECD Economic Survey of New Zealand (www.oecd.org/eco/surveys/new-zealand-2maori013.htm).

English

Keywords: training, education attainment, NEET, student loans, school choice, assessments and evaluation in education, schooling, youth minimum wage, careers education, skills, student grants, early childhood education, labour market matching, vocational education, tertiary education, qualifications, education achievement, youth unemployment, education funding, Pasifika, apprenticeships, private returns to education, human capital, teaching quality, youth activation policies, Maori
JEL: I22: Health, Education, and Welfare / Education and Research Institutions / Educational Finance; Financial Aid; J63: Labor and Demographic Economics / Mobility, Unemployment, Vacancies, and Immigrant Workers / Labor Turnover; Vacancies; Layoffs; J23: Labor and Demographic Economics / Demand and Supply of Labor / Labor Demand; J24: Labor and Demographic Economics / Demand and Supply of Labor / Human Capital; Skills; Occupational Choice; Labor Productivity; I24: Health, Education, and Welfare / Education and Research Institutions / Education and Inequality; I25: Health, Education, and Welfare / Education and Research Institutions / Education and Economic Development; I21: Health, Education, and Welfare / Education and Research Institutions / Analysis of Education; J62: Labor and Demographic Economics / Mobility, Unemployment, Vacancies, and Immigrant Workers / Job, Occupational, and Intergenerational Mobility; Promotion; J21: Labor and Demographic Economics / Demand and Supply of Labor / Labor Force and Employment, Size, and Structure; H52: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Education; I28: Health, Education, and Welfare / Education and Research Institutions / Education: Government Policy
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