Efficiency of the teaching-industry linkage in the Australian vocational education and training

The vocational education and training (VET) sector plays a crucial role in Australia’s education system. Associated closely between the VET provision and industry, VET training quality is continually at the heart of debates in the process of implementing the Australian VET reform agenda. In response of key themes of this reform process, investigating the training efficiency of VET through the linked efficiency between teaching and industry responsiveness is imperative. The paper aims to address this objective by using the dynamic network data envelopment analysis in a balanced panel data for 2008–2012. This advanced model allows to assess simultaneously the efficiency of two nodes, teaching and industry responsiveness, and the overall dynamic training efficiency of VET based on fields of education in a network structure. We found that the overall training efficiency of VET is, on average, 0.835 while the mean divisional efficiencies of the teaching efficiency and industry responsiveness are 0.763 and 0.908, respectively. Sensitivity analysis is conducted to examine dynamic changes of the efficiency of the teaching and industry linkage following various period weights. Policy implications are drawn for the Australian VET sector.