Social Mobility via Educational and Occupational Attainment: Evidence from Australia

Abstract

The restructuring of the Australian labour market has decreased demand for low-skilled workers and increased demand for highly skilled workers and professionals further strengthening the relationship between education and social mobility. Low-skilled workers are less likely to participate in the labour force, are less likely to be employed and if employed, are less likely to be employed on a full-time basis. To satisfy the demand for highly educated workers, the government has reorganised the higher education sector increasing the number of universities, trebling the number of places for domestic undergraduate students and providing income-contingent loans to cover tuition fees. Although these measures have facilitated an increase in the proportion of female students and an increase in the proportion of students aged 25 years or more, there is little evidence that inequalities linked to socio-economic status have diminished. Analysing data from the Household, Income and Labour Dynamics in Australia (HILDA) survey, this paper examines the association between parents’ education and the likelihood of graduating from university for six birth cohorts of Australians. Overall, the findings suggest that the expansion of the higher education sector in Australia has resulted in older men and women from advantaged backgrounds returning to education and upgrading their qualifications rather than younger men and women from disadvantaged backgrounds undertaking higher education.