ba 104.low pay jobs (b. pockoc)

7/25/2019 BA 104.Low Pay Jobs (B. Pockoc)

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NCVER

Low-paid workers, changing

patterns of work and life, andparticipation in vocational educationand training: A discussion starter

BARBARA POCOCK

C!"R #OR$ORK %L,'!&(R)&"* O# )O'"+A')"RAL&A

"he views and opinions epressed in this docuent are those of the

author.pro/ect tea and do not necessaril0 reflect the views of the Australian

1overnent or state and territor0 governents2OCC

A)&O

!ALPAPR


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Pu3lisher4s note

Additional inforation relating to this research is availa3le in: ! )kinner and P King 5667, Investigating

the low paid workforce: Employment characteristics, training and worklife balance, Centre for $ork % Life,

Adelaide2 &t can 3e accessed fro the Centre for $ork % Life we3site:

8http:..www2unisa2edu2au.hawkeinstitute.cwl.docuents.investigating-low-paid2pdf92

"o find other aterial of interest, search (OC ;the '!)CO.!C(R international data3ase

8http:..www2voced2edu2au9< using the following ke0words: casual eplo0ent= la3our arket=

literac0= low incoe group= polic0 foration= research progra= skill developent= social eclusion=

social inclusion= socio-econoic 3ackground= uneplo0ent= wage2

Australian Government, 2009

"his work has 3een produced 30 the !ational Centre for (ocational ducation Research ;!C(Ruests should 3e ade to

!C(R2

"he !("R progra is 3ased upon priorities approved 30 inisters with responsi3ilit0 for

vocational education and training ;("


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NCVERA3out the research"ow#paid workers, changing patterns of work and life, and participation in vocationaled$cation and trainingBar3ara Pocock, Centre for $ork % Life, 'niversit0 of )outh Australia

"he factors that influence the participation of low-skilled and low-paid workers in vocationaleducation and training ;("< is the focus of a a/or research pro/ect 3eing undertaken 30 theCentre for $ork % Life at the 'niversit0 of )outh Australia2

"his paper was prepared to draw attention to the issues eerging fro the research, and tostiulate interest in it2 &t was used as the 3ackground for a discussion in late 5667 involving agroup of around 56 people working in governent, education, industr0 and counit0 services2

A strong thee arising out of the paper and su3se>uent discussion was that low-paid workersface copounding issues that affect their /o3, life and training prospects, including: fear ofchange, lack of confidence, low literac0 and nuerac0 skills and churning 3etween welfare andwork2

Ke0 Gessages

(ocational education and training is not the onl0 ingredient needed to iprove thecircustances and /o3 prospects of those currentl0 in low-paid /o3s or fro poorereducational 3ackgrounds2

&t is iportant to distinguish 3etween groups within the low-paid work force2 )oe peoplechoose casual work, which is often low-paid, to suit other aspects of their life2 Others areHstuck4 in their /o3s, for who a polic0 intervention a0 assist in iproving their lives2

"o date, there has 3een a lack of successful and sustained connections 3etween eplo0entservices and ("2

'tilisation of and pa0ent for skills is a a/or consideration in the circustances of the low-paid2 "he >uestion reains a3out how easures to iprove wages should 3e financed, howto ensure good skills atches and to provide training, and who should 3ear the cost2

"raining options need to 3e appropriate, and do not necessaril0 re>uire full >ualifications2

#lei3le, afforda3le and suita3le skills recognition in the workplace is iportant, as this is

often part of a successful /o3 redesign or up-skilling pathwa02

"he net stages of the research include a purpose-designed vocational education >uestionnaire tosuppleent the 566? Australian $ork and Life &nde and talking to people in three industr0areas where low paid workers, with relativel0 poorer educational 3ackgrounds, doinate: agedcare, food processing and retail2

"o KarelGanaging irector, !C(R


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Pocock

Contents

"a3les and figures D

ecutive suar0 @

&ntroduction ?

+ow an0 and who are the0I "he incidence and characteristicsof low-paid workers 6

$orkJlife issues and low-paid workers D

Low-paid workers and vocational education and training ?

&ssues: Low-paid workers, (" and workJlife 55

References EE

Appendi : OC estiates of low pa0 aongst full-tieeplo0ees, percentages, id ??6s and 566EJ6 ED

Appendi 5: stiates of the incidence of low pa0 in Australia,appl0ing different definitions E@

Appendi E: )oe eaples of polic0 responses E7


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D Low-paid workers, changing patterns of work and life participation in (": A discussion starter

"a3les and figures Calculation of low-paid 3enchark and proportion of

low-paid 5 Age characteristics of Australian low-paid eplo0ees,

percentages, Australia 566 5E Low-paid workers4 la3our arket transitions, percentages,

Australia, 566J6E

plo0ees in low pa0 30 age and gender, percentages,Australia, 566 5


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Pocock @

ecutive suar0arl0 in 5667 !C(R engaged the Centre for $ork % Life at the 'niversit0 of )outh Australiato undertake a three-0ear research progra2 "his research is eploring how changing conditionsat work, at hoe and in the wider counit0 affect the participation of poorer educated andlower-paid groups in vocational education and training ;("


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7 Low-paid workers, changing patterns of work and life participation in (": A discussion starter

An education and training issue

Research eaining individual rates of return on skill ac>uisition through investent in traininggenerall0 indicates positive outcoes, although this is difficult to >uantif02 &n addition there isevidence to suggest incidences of low pa0 decreasing with higher educational >ualifications2

ata fro the )tudent Outcoes )urve0 indicate that /ust over two-thirds of (" graduatesfro low-paid occupations report that the0 do not eperience an increase in occupational levelor earnings as a result of training2 &n addition, students fro low socio-econoic 3ackgroundsare overl0 concentrated in lower-level (" >ualifications, where there is a low financial return tothe student2 &t is therefore not clear how (", on its own, can help those in lower paidoccupations or fro lower-educated 3ackgrounds2

$e do know there is a strong association 3etween low literac0 levels and eplo0ent in low-paid occupations2 $orkers with poor literac0 are over twice as likel0 to 3e eplo0ed in a low-paid occupation2 #or an0 low-paid workers educational interventions around literac0 arerelevant to iproving work outcoes2

A la3our arket issue

"his paper shows that changing the la3our arket situation of low-paid workers needs orethan Hadding vocational training and stirring4: it relies on a range of changes in other factors2'tilisation of skills and pa0ent for those skills is a a/or consideration2 "here is evidence ofeplo0er resistance to training which ight increase la3our costs and eplo0ee resistance totraining when the rewards for ac>uiring new skills are not forthcoing2 #unding odels,profita3ilit0, /o3 design, career paths and different fors of eplo0ent also atter2

$here to fro hereI

"his paper ais to provide 3ackground inforation to generate discussion a3out the situation oflow-paid workers, their changing workJlife contet and the potential that (" represents toassist iproveents in their working lives2 &t eaines the ke0 issues related to the incidenceand characteristics of low-paid workers, what we know a3out their workJlife situation and their(" participation2

"he Australian workforce includes a significant group of low-paid workers, an0 of who areaffected 30 workJlife pressures2 $ithout intervention addressing pa0 structures, the educationand training efforts of Australian low-paid workers a0 fuel creeping credentialis rather thanreduce working povert0 and wage ine>ualit02

"he issues are iportant in the contet of the Coonwealth 1overnent Productivit0 Places

Progra, with an0 of the new training places created 30 this initiative 3eing in low-paid areasof eplo0ent2 "he growing attention to the sharing of costs around (" and what effect thiswill have on the a3ilit0 of those ost in need to access further education is also a a/or concern,particularl0 given that participating in paid work and iproving educational outcoes are at theheart of social inclusion agendas in Australia2

"he net stage, and a su3stantial coponent of the research, is the inclusion of a purpose-designed vocational education >uestionnaire to suppleent the 566? Australian $ork and Life&nde ; see 8http:..www2unisa2edu2au.hawkeinstitute.cwl.pro/ects.awali2asp9


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Pocock ?

&ntroduction#or the past E6 0ears, Australia has 3een eperiencing significant change in eplo0ent patternsand household structures2 "hese have affected the wa0s in which workers eperience theintersection of work with the rest of their lives and also the practices and productivit0 ofworkplaces, as well as the larger econo02

Low-paid workers are not iune fro these changes and are likel0 to 3e eperiencing the in

distinctive wa0s, copared with the eperiences of higher paid workers2 $hile soe aspects oftheir changing eplo0ent and household structures are coon to other kinds of workers ;foreaple, growth in woen4s participation and unchanging patterns of household la3ourue ;for eaple, the co3ination of 3oth incoe and tie povert0uentl0 studied as an individual issue2 "he contri3ution ofthis paper, and the pro/ect it is part of, is to 3egin to consider their intersection in the Australiancontet2

"owards this end, this paper develops in the following wa0: first, we eaine ke0 issues related

to the incidence and characteristics of low-paid workers= then we turn to the liited aount weknow a3out their workJlife situation, and third, we consider their (" participation2 &n thefourth section we 3ring the three areas together to pose soe issues and >uestions for futurestud02

Our area of

interest

Low-paid workers Work-life issues

VET


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+ow an0 and who are the0I

"he incidence and characteristicsof low-paid workers

&ncidence

"he incidence of low-paid workers in Australia is an iportant contet for the discussion of low-paid workers, (" and workJlife issues, as it gives us a sense of the significance of the pro3leswe plan to address2

"he >uestion of incidence is cople given diverse definitions of low-paid workers and diversedata sources2 "he Organisation for conoic Co-operation and evelopent ;OC< defineslow-paid workers as Hfull-tie wage-earners earning less than two thirds of the edian wage offull-tie wage-earners4 ;566D, p2@


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Pocock

point out that it is pro3a3l0 an under estiate of the incidence of low pa0 ;566@, p7


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&n ters of occupations, lower-skilledoccupations have the highest shares of low-paideplo0ees: in 566, for full-tie eplo0ees, E25 of la3ourers and related occupations and@2? of eleentar0 clerical, sales and service workers were low paid ;close to the #G$ orlower< and for part-tie eplo0ees, 562 of la3ourers and 2? of eleentar0 clerical salesand service workers were low paid2

#ull-tie casualworkers are three ties ore likel0 to 3e low paid than peranent or contracteplo0ees and twice as likel0 to 3e low paid if the0 are part-tie ;Gc1uinness, #ree3airn MGavroaras 566@, p2D


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Pocock E

$oen are ore likel0 to 3e low paid, and this is consistent across the age spectru, akinggenderan iportant issue in anal0sis of low pa0 ;figure uestion ofwhat ena3les or inhi3its such transitions2


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Low-paid workers, changing patterns of work and life participation in (": A discussion starter

Table 3 Low-paid workers labour market transitions, percentages, Australia, 200103

Transition Percentage

Low-paid from 2001 to 2003 28.7

Stepped up to higher-paid job in 2002 or 2003 40.6

Stepped up to higher-paid job in 2002, then back to low-paid job in 2003 8.7

Not working in 2002 or 2003 (unemployed/not in labour force) 9.7

Remaining low-paida 12.2

Total 100.0aThis group comprises low-paid workers with different transitions between low-paid work, non-low-paid work and notworking over the three years. They are more likely to have experienced change in each of the three waves, for example,low paid (2001) to higher paid (2002) to unemployed (2003). This group also includes those who moved to self-employment.

Source: Masterman-Smith & Pocock 2008, HILDA (200103, waves 13).

Long-ter service in low-paid work is soeties associated with declining wages over tie andover a Hcareer4, and churning 3etween low pa0, uneplo0ent and undereplo0ent2 $orkerswho change /o3s ore fre>uentl0 talk of oving fro one low-paid /o3 to the net2 La3ourers

3ecoe cleaners, waitresses 3ecoe hotel workers, and shop assistants 3ecoe childcareworkers2

*vonne unlop found that low-paid Hworkers can 3ecoe trapped in a c0cle of low pa0 and nopa0 where the chances of escape decrease with greater aounts of /o3lessness4 ;5666uarter 3ecae uneplo0ed and three->uarters left the la3our arket altogether2 !earl0a third of the Hreaining low paid4 categor0 also ended up uneplo0ed within two 0ears2 "hesefigures suggest that a degree of churning 3etween low pa0 and uneplo0ent occurs inAustralia, although we cannot 3e precise a3out the scale of the phenoenon2

Gc1uinness, #ree3airn and Gavroaras ;566@, p2E6< find that positive transitions are orecoon for full-tiers than part-tiers2 "he0 anal0se +&LA data for 566J6 finding that52 of full-tie low-waged workers in 566 were either still low waged in 566 or inactive oruneplo0ed, copared with 2 of part-tiers2 $hether in full- or part-tie eplo0ent, aver0 significant portion of workers reains in low-paid work over sustained periods of tie,suggesting that low pa0 does not function as a stepping stone for an02

&n su, low pa0 is far fro a trivial issue in Australia4s la3our arket conservativel0 affectingore than one in ten workers2 $hile low pa0 does not align with low household incoe foran0, it is a long-ter eperience for the a/orit0 of low-paid workers, soeties interleavedwith periods of uneplo0ent and.or undereplo0ent2 Low pa0 is not a Hlife stage4eperience /ust for the 0oung: it affects an0 older workers as well2 Gore woen are affected

than en, and low pa0 is ver0 concentrated 30 occupation, industr0 and skill level2

+ow should we take account of this contet in stud0ing how (" can work to iprove thesituation of low-paid workers in their changing workJlife contetsI #irstl0, the fact that low pa0affects a siea3le proportion of Australian workers akes our focus on this group iportant2"he persistence of low pa0Ndespite a decade of strong la3our arket growthNconfirs thisiportance2 plo0ent grew 30 ore than two illion 3etween ??7 and 5667, to reach 62@illion in Octo3er 5667 ;AB) 5667


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Pocock

"hirdl0, the d0naic transitions that characterise the eperience of low pa0 and its persistencethrough tie for an0 individuals, akes anal0sis of low pa0 over the life course and over tieof particular interest: can (" help facilitate oveent out of low pa0 and how do workJlifeissues intersect with this possi3ilit0I

$e now turn to workJlife issues and the liited aount we know a3out how these issues affectlow-paid workers2

Ke0 points

At least E of adults earn close to the iniu wage or lower2

"he #ederal iniu wage is currentl0 Q2E.hour or QE2@7 per full tie week ;fro Octo3er 5667


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D Low-paid workers, changing patterns of work and life participation in (": A discussion starter

$orkJlife issues andlow-paid workers

$ork and life issues e3race a wider set of factors than Hwork and fail04 issues, including thewa0s in which work affects the lives of all workers, not /ust those with responsi3ilities forchildren or failies2

H$ork and fail04 issues have 3een the su3/ect of uch stud0 in Australia ;see for eaple,Cap3ell M Charlesworth 566: +uan Rights and >ual Opportunit0 Coission 566@


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Pocock @

positive for workJlife interaction2 $hen working hours are the sae, casual workers have worseworkJlife interaction than peranents2 &n addition, casual ters do not protect workers frofeeling overloaded: the0 had a3out the sae incidence of perceived overload as peranenteplo0ees in the 5667 surve0 ;)kinner M Pocock 5667, p2@ualit0 /o3s and this holds for a range of /o3->ualit0 easures, including /o3 securit0, work overload, tie and task autono0, flei3ilit0 ofworking tie and overall /o3 satisfaction ;Pocock, )kinner M $illias, 566@, p25ualifications, followed 30 those with auniversit0 >ualification ;Pocock )kinner M $illias 566@, p2E@


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&n su, it sees that workJlife issues affect an0 low-paid workers2 $hile a greater proportionof higher-paid workers appear to 3e ore affected, reflecting their workloads and workinghours, an0 low-paid workers eperience negative workJlife interference2 Particular groups areespeciall0 affected, including casual workers, those working longer hours, those who feeloverloaded, others ;especiall0 single others


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Pocock ?

Low-paid workers and vocationaleducation and training

Anal0sis in this section suggests that workers fro low-paid occupations, especiall0 woen, area/or users of ("2 +owever, it is less clear that this education and training results in theac>uisition of skills that are used at work and in higher levels of pa0 for a significant proportionof low-paid workers2

Participation

$orkers in low-paid occupations are a a/or student group in (": two-thirds of 566@ ("graduates were eplo0ed in low-paid occupations in the si onths prior to their training;according to )kinner and King4s anal0sis of the (" )tudent Outcoes )urve0 )O) 566@undertaken as part of the current stud0


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*ounger (" participants fro low-paid occupations were ore likel0 to graduate withhigher (" >ualifications ;certificate &( or a3ove< than older participants, who were orelikel0 to graduate with lower-level certificates2

Aongst lower-educated workers ;*ear or lower >ualification< students participating in(", regardless of occupation, had greater access to flei3le work arrangeents than those

not engaged in (", other than woen (" students in low-paid occupations2

+ow does participation in (" affect earnings and eplo0ent levelI

Gost (" graduates do not ove into a different occupational skill level after training, including/ust over two-thirds of those fro low-paid occupations and 7D25 of those fro higher-paidoccupations ;)kinner M King 5667uarter of (" graduates fro low-paid occupations oved to higher skill levels intheir post-training work, copared with E26 of those fro other higher level occupations2Low-paid workers are also less likel0 to ove to a lower skill level ;E2 copared with 627of other occupations


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Pocock 5

"here was also a positive relationship 3etween good literac0 proficienc0 and higher earnings;though the effect was slightl0 weaker, 30 @, than the occupational effectualifications: those peoplecopleting *ear 5 or higher were nearl0 four ties ore likel0 to have ade>uate or 3etterliterac0 copared with those with *ear or lower2 "hese findings suggest that, for an0 low-paid workers, educational interventions around 3asic literac0 are relevant to iproving workoutcoes, especiall0 for woen2

Ke0 points

$orkers in low paid occupations are a a/or (" client group2

ust over two-thirds of (" graduates fro low paid occupations do not ove into adifferent occupational skill level after training2

Low literac0 and eplo0ent in low paid occupations are strongl0 associated2


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&ssues: Low-paid workers, ("and workJlife

)o far we have anal0sed the incidence of low pa0, considered workJlife pressures, eained theparticipation of low-paid workers in (" and discussed the relationship 3etween literac0 levelsand low pa02

"he eerging picture suggests that a significant group of low-paid workers eists and an0 areaffected 30 workJlife pressures2 espite this, workers in low-paid occupations ake up a

significant proportion of (" students, especiall0 part-tiers and woen2 +owever, aroundtwo-thirds of these participants do not eperience an increase in occupational level or perceivedearnings as a result of training2 #inall0, we have found a strong association 3etween low literac0and low pa02

&n the reainder of this paper, we consider a nu3er of issues that arise in this contet,3eginning with a 3asic >uestion: to what etent is Hore ("4 an answer for low-paid workersI

&nvestent in skills training and la3our arket outcoes

%ill increased &E' lead to better employment o$tcomes for low#paid workers(

Can it 3e assued that increasing the participation of low-paid workers in (" and increasingtheir skills and >ualifications will autoaticall0 iprove their la3our arket status with itsassociated rewardsI &s a suppl0-side focus on training enough for low-paid workersI

"he iportance of this >uestion is confired 30 a recent anal0sis of skills shortages and theutilisation of skills in Australian workplaces2 $atson4s ;5667< findings suggest that the skillsshortage is often overstated and >uite confined to particular industries, especiall0 constructionand ining2 +e suggests that coitent to the suppl0 of training without careful considerationof the $seof skills in the workplace ;that is, the deand side of skill developent anddeplo0ent< can lead to over-investent or is-investent in training2 Producing enoughgraduates is onl0 part of the pro3le: it is iportant to Hconfront issues of over->ualification,and isatches 3etween the suppl0 and deand for skills4 ;$atson 5667, p2i


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Pocock 5E

'he larger political economy of training

"he iportance of considering 3oth suppl0 and deand of skills and la3our also arises fro theanal0sis of Hskill evolution4 in the health and counit0 services sector, where Buchanan arguesthat training outcoes are shaped 30 at least seven factors: funding odels, patterns of eplo0erownership, eplo0ent structures ;part-tie, casualuisition of new skills2

$atson has argued that the workplace deplo0ent of la3our and fors of la3our engageent;for eaple, whether casual or part-tie< affect the efficac0 of training and the use to whichskills are put2 +e also points out, in agreeent with Buchanan, that 3roader factors are relevantincluding Hrecruitent practices, work organisation, /o3 design the provision of career paths andthe ters of engageent4 ;$atson 5667, p2ii


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for their /o3s ;3ased on workers4 perceptionsualified workers ;where low-paidworkers are a a/or coponent< have a uch higher level of over->ualification than those withdegrees: D were working in /o3s that did not use their vocational >ualifications ;coparedwith 5 of workers with degrees who were working in /o3s that did not re>uire degree-level>ualificationsualification levels are also under-

eplo0ed and would like to work ore hours ;E2D of en and ED2D of woen< ;566,p257, cited in $atson 5667ualification ;appl0ing a different ethod< finds that H2 illionAustralians ;or of those eplo0ed< are currentl0 over-educated for the work the0 areeplo0ed to do4 ;Cull0 et al2 566D, p255ualified including over a third of those in anufacturing, retail, and health and counit0services ;$atson 5667 p2?ualification= Hpoor4 is defined as a situation where graduates end up in a lower-skilledoccupation, or uneplo0ed or not undertaking further stud02 "he0 conclude:

Overall, @6 of graduates in 566 eperienced a good outcoe, and 5? eperienced a

poor outcoe S Gale graduates were ore likel0 to eperience a good outcoe according

to this easure than feale graduates2 "here is also a strong association with pre-training

eplo0ent status and occupation2 "hose who were not working or who were eplo0ed in

lower level occupations were the least likel0 to eperience good outcoes2

;Cull0 et al2 566D, p2Eualification2 "hirt0 per cent of allthose eplo0ed in accoodation, cafes and restaurants 3elieve their skills are underutilised.

"hese findings raise iportant issues a3out the efficac0 of increasing the >ualifications of low-paid workers2 &f an0 are going to continue to 3e eplo0ed in /o3s that do not utilise their skills,then the value of increasing their participation in the ac>uisition of >ualifications a0 3e>uestiona3le2

Low-paid /o3s are differentNand this affects (" participation

+hysically demanding work

Conversations with stakeholders in aged care, retail and food processing ;including eplo0ers,training providers and industr0 skills council e3ers< draw attention to the distinctiveness oflow-paid /o3s: the0 are often not popular 3ecause the0 are ph0sicall0 deanding, tiring andNaccording to industr0 personnelNre>uire a Hcertain kind of person4None who is a3le stick with


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Pocock 5

work that can 3e repetitive or re>uire 3eing on 0our feet all da02 As one put it, 0ou need toaccept H3eing a cog in a wheel42 )uch /o3s often lack career pathwa0s and are undervalued2Attri3utes like Hpersistence and resilience4 are fre>uentl0 entioned, along with relia3leattendance2 &n retail, a Hwinning4 sales personalit0 is valued= however, in this sector, pa0ent 30results s>ueees tie for training, while /o3 pressures do so in food processing and aged care

;GcGahon 5667uit0 cases initiated 30 the Li>uor +ospitalit0and Giscellaneous $orkers 'nion2 +owever, their achieveents have not reoved shallowcareer.pa0 structures ;L0ons M )ith 566D


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5D Low-paid workers, changing patterns of work and life participation in (": A discussion starter

'nfortunatel0, $atson4s anal0sis of (" student outcoes data shows that one-fifth of allla3ourers and eleentar0 clerical, sales and services workers lacked the chance to iprove theirskills while at work copared with one tenth of associate professionals and tradespersons ;5667,p2?


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Pocock 5@

Both hours of work and for of engageent shape skills utilisation: the skills of part-tie casualeplo0ees are ost under-utilised, followed 30 peranent part-tiers, then casual full-tiers2

"his suggests that the opportunities to utilise one4s skills and a3ilities hinges not /ust on theode of engageent and how contingent the work is2 &t also depends on one4s presence in theworkplace, and the wa0 in which part-tie workers are ecluded fro these kinds ofopportunities ;$atson 5667, p2uestiona3le value unless their casualstatus is also addressed2

-npredictable employment ho$rs

"he long, unsocial and unpredicta3le hours that characterise the workplace eperience of soelow-paid workers coplicate their access to training2 Gan0 work these hours to copensate forlow hourl0 rates of pa0 3ut find the0 crowd out other activities including ("2

$orking tie arrangeents, including especiall0 the predicta3ilit0 and securit0 of working tie,the configuration of working tie over the week, the total nu3er of working hours and theeffects of ver0 short or ver0 long hours are all likel0 to influence the (" participation of soeworkers, especiall0 low-paid or casual eplo0ees2

.ob instability and t$rnover

)oe low-paid workers descri3e a volatile and highl0 copetitive world in their workplaces2"heir sall-to-ediu sie workplaces liit upward wage o3ilit0 and prootionalopportunities2 )aller enterprises, such as those in the cleaning and childcare sector, have ahigher risk of failure or closure2 )oe low-paid workers are eplo0ed in private households,where the suppl0 of work is erratic and prootion ipossi3le2

Other relevant workplace factors include favouritis in prootion aking investent intraining risk0 in ters of securing a prootion, lack of prootional opportunities, the a3senceof on-the-/o3 or off-the-/o3 training through the workplace, poor anageent, lack ofchapions who support low-paid workers into and through training, eplo0er resistance topa0ing for higher skills and lack of >uantification of the productivit0 outcoes of training for

low-paid workers2

$orkplace training Hpathwa0s4 often ipl0 cople financial, childcare and household /ugglingfor the workers who tr0 to navigate an incoe through change2 Low-paid workers en/o0 lesseplo0er and /o3 sta3ilit0 than average: +&LA data show that in 566, ED of low-paidworkers were not working for the sae eplo0er as the0 had 3een in 566E, copared with 5of all workers2

o3 continuit0 and predicta3le tenures are iportant to workplace training and skilldevelopent, which ena3le /o3 progression2 +owever, these are harder to find in the sall-to-ediu sie sector, where low-paid workers are concentrated2


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Particular attri3utes of low-paid workers

/inancial insec$rity inhibits risk#taking in ed$cation and training

"he precarious eplo0ent often eperienced 30 the low-paid can underine their confidence

to ake the personal investents that ight provide a route into 3etter-paid work2 )tepping upfro a low-paid /o3 fre>uentl0 involves changing eplo0ers and.or occupations2 Gaking such aove ight see a rational and siple atter fro the outside2 +owever, given that an0 low-paid workers struggle to ake ends eet financiall0, this is 30 no eans a routine decision2 Low-paid workers can 3e reluctant to /eopardise their low-paid position for a higher-pa0ing /o3,especiall0 if the0 have anaged to secure peranenc0, which can 3e a real achieveent in itself2As Chelsea puts it in Gasteran-)ith and Pocock ;5667< H& don4t want to take the risk of losingwhat &4ve got4 ;6s, childcare workerualification2 & looked into it, 3ut the cost to get one, and the tieNthere4s a lot of hours2

&4d rather spend the tie doing soething to actuall0 get a 3etter incoe as opposed to Q?

a week S

"here is considera3le pressure on low-paid workers to get their educational decisions right thefirst tie, aking ultiple courses, second degrees and postgraduate studies out of reach forost2 $ith few resources to spare, low-paid workers ake careful cost-and-3enefit assessentsa3out investing in higher >ualifications2 Central to these calculations is the likel0 pa0-off for theirtie, one0 and effort2 Gan0 find the outla0s necessar0 to ove into 3etter-paid work 3e0ondtheir resources2 "he0 are often forced to ake sall investents in their eplo0ent prospectsthat t0picall0 produce sall returns2

/actors affecting access to &E'

"he eisting literature suggests that fear, low confidence, high care loads, ehaustion, age,gender, churning 3etween welfare and work, iigrant status and non-nglish 3ackgrounds canall affect the access of low-paid and low-skilled workers to ("2

According to a recent >ualitative stud0 of uneplo0ed people and those outside the la3our force,lack of >ualifications, disa3ilit0 and health issues, age, caring responsi3ilities, poor workeperience or unsuita3le hours each affected ore than 56 of 6D respondents2 (" accesswas especiall0 affected 30 liited literac0, lack of relevant >ualifications or 3eing over->ualified;Goskos 566@


29/40

Pocock 5?

"he financial costs and 3enefits of learning

"here is growing attention to the sharing of costs around (", following the adoption ofincoe-contingent loans to fund participation in higher education2 #or eaple, Chapan,Rodrigues and R0an state:

&ndividuals 3enefit for the rest of their working lives fro higher level (" studies2vidence shows that the training the0 undertake iproves their chances of getting a /o3,

and eans that the0 can earn higher incoes than the0 would otherwise2 "heir up-front

investent in stud0 therefore continues to pa0 off 0ear after 0ear2 stiates suggest that

this pa0off is high, at around @ or ore of the total the0 pa0 in fees and the incoe the0

give up while the0 stud02 ;Chapan, Rodrigues M R0an 566@, p25


30/40

E6 Low-paid workers, changing patterns of work and life participation in (": A discussion starter

Around half of eplo0ed woen in the +&LA surve0 were in low-paid occupations coparedwith /ust over one-third of en2 )O) anal0sis shows that 762 of feale (" graduates wereeplo0ed in low-paid occupations prior to training, copared with 26 of en2

"aking account of working hours, woen are ore likel0 to eperience workJlife pressures andhence have ore difficult0 anaging work, life and stud0 with coitents, copared withen ;Pocock 566E= 30 et al2 566= )kinner M Pocock 5667ualifications in566, copared with E of higher-paid woen and E of low-paid en2 $hile it is to 3eepected that higher->ualified woen will have taken up higher-paid positions, 7 of woenwith post-school >ualifications are earning low wages, including 6 of graduate woen2 "hefigures are lower for en at and 7, respectivel02 "he waste of low-paid workers4, andespeciall0 woen4s, skills, talent and potential is o3vious2

"his picture is confired internationall0, and it sees to 3e getting worse, not 3etter2 #oreaple, in the 'nited Kingdo the proportion of woen graduates in low-level /o3s, definedas those in the 3otto 5 of all /o3s, Halost tre3led, fro in ?? to E in 5664 ;>ualOpportunities Coission 566@, p2?ualOpportunities Coission report deonstrates that a good education is not necessaril0sufficient for growing nu3ers of low-paid woen workers to aintain a livea3le, independentwage in the face of their ongoing responsi3ilities for care and doestic work, inflei3le pu3licand workplace institutions, and gender pa0 ine>uities that severel0 under-reward traditionall0feinised /o3s in the services sector2

Life-c0cle considerations are particularl0 pertinent for older low-paid woen workers2 )oeissed out on training opportunities as 0ounger woen, copared to the training pathwa0savaila3le to their ale peers2 )oe have paid a high price, in ters of lifetie earnings, fornarrow, segented training and /o3 options2

#or older low-paid woen, their educational advanceent has coonl0 taken a 3ackseat todoestic epectations and care responsi3ilities, leading an0 into precarious financial straits inlater life, particularl0 when divorced or living in sole-households2

Gan0 woen ust overcoe low levels of confidence to return to education2 #or those whostruggled with earl0 schooling, a return to stud0 is daunting2 Gan0 are fearful of further stud0,and their fears are copounded 30 the ehaustion of paid work and liited tie as well as

one02


31/40

Pocock E

Age, low pa0 and ("

"he propensit0 to engage in training decreases over the life course ;AB) 566uit0 and a3out the true lifelongaccess of those ost in need of further education2 $hat is the eperience of those individualswho, for reasons of cost or other 3arriers, cannot access skills trainingI A plausi3le h0pothesis isthat a large nu3er of these individuals will 3e those ost in need of skills training, those whoHissed out4 on post-school education, those with low literac0, and low-paid workers2 At presentthose with low education and low skills ;particularl0 those with liited secondar0 education andliterac0 skills< are the least likel0 to engage in lifelong learning ;$atson 566, p2= )el30 )ith M

#errier 5665uences for their working lives2Polic0 responses need to take into account the configuration of eplo0ent in low-paidoccupations and the industr0 and workplace contet for the utilisation and rewards of skill2

"he a/orit0 of woen (" students in low-paid occupations are part-tie workers2 $hile thisa0 facilitate caring responsi3ilities and ena3le ore tie for stud0 copared with full-tie


32/40


work, it is also likel0 to restrict the financial and ph0sical resources availa3le to support ("participation ;for eaple, couting costs, childcare costs, access to &" hardware and softwareat hoeualit02 $ithout structural refor of wage structures and fair reward for skill in /o3s andla3our arkets that accoodate care responsi3ilities over the life c0cle, it is possi3le that lowpa0 will continue in an0 /o3s and sectors, such as the services sector2

)ecuring wage iproveents and (" participation re>uires resources that an0 uneplo0ed,low-paid workers and their households do not have, as well as support fro eplo0ers andgovernents2 "his suggests that responses that consider the workJlife contets and theinstitutions and cultures that surround low-paid workers and their (" prospects, as well as therisks the0 perceive, are vital2

&ssues of Hcost4 and Htie4 create significant 3arriers to participation in (" for low-paid workersor those with liited education2 Better pathwa0s for the low-paid ust thus address these twover0 o3vious 3arriers5as well as the iplications arising fro different fors of eplo0ent

and the differential conse>uences of risk taking for the financiall0 insecure2

5Appendi E includes soe eaples of initiatives that have attepted to address these and other 3arriers2


33/40

Pocock EE

ReferencesAllan, C, O4onnell, G and Peet, ???, HGore tasks, less secure, working harder: "hree diensions of

la3our utilisation4,.o$rnal of Ind$strial elations, vol2, no2, pp2?JE2Aleida-)antos, # and Guford, K2 566 Hplo0ee training and wage copression in Britain4, 'he

2anchester )chool, vol2@E, no2E, pp2E5-E52Austen, ) 566E, H1ender differences in the likelihood of low pa0 in Australia4,A$stralian .o$rnal of "abo$r

Economics, vol2D, no2, pp2EJ@D2Australian Bureau of )tatistics 566 )$rvey of ed$cation and training, cat2no2D5@726, AB), Can3erra2

NN Australian Bureau of )tatistics 566,Ed$cation and training e3perience A$stralia, cat2no4D5@726, AB),Can3erra2

NN566@, H)killing Gature age Australians for work4, cat2no2E626,A$stralian 5ear 6ook, A1P), Can3erra2NN5667, "abo$r force A$stralia,cat2no2D565262266, AB), Can3erra2Australian &ndustrial Relations Coission 566, )afety 7et eview%ages, decision suar0, @ une,

Australian &ndustrial Relations Coission, Gel3ourne, viewed 5? Octo3er 5667 8http:..www2airc2gov2au.full3ench.PR66566Tdec2ht 92

Barnett K M )poehr, 5667, Comple3 not simple: 'he vocational ed$cation and training pathway from welfare to work,!C(R, Adelaide2

Bohei, R M Booth, A 566, H"rade union presence and eplo0er-provided training in 1reat Britain4,Ind$strial elations,vol2E, no2E, pp256JD2

Buchanan M others ;unnaed< H$hatever happened to lifelong learningI Lessons fro recent Australianvocational education and training refors4, in 8rowth no4: "ifelong learning, Coittee for conoic

evelopent of Australia, Gel3ourne2Buchanan, ;no date

epartent of the Prie Ginister and Ca3inet, 5667, )ocial incl$sion,A1P), Can3erra2unlop, * 5666, "abo$r market o$tcomes of low#paid ad$lt workers, occasional paper D5?E26266266, AB),

Can3erra, viewed 5? Octo3er 56678http:..www2ausstats2a3s2gov2au.ausstats.free2nsf.Lookup.C@#C?@7#6E76B5CA5DA?66DDE.Q#ile.D5?E66666T??@2pdf92

u3ur0, L M +iggins, C 5667, H$orkJlife 3alance in Australia in the new illenniu: Rhetoric versusrealit04 Beaton Consulting, Gel3ourne2

ardle0, "2 ??7, %orking b$t poor( "ow pay and poverty in A$stralia, discussion paper ?, )PRC, )0dne0,viewed on 5? Octo3er 5667 8http:..www2sprc2unsw2edu2au.dp.dp?T5up2pdf92

ardle0, " 5666, H$orking 3ut poorI Low pa0 and povert0 in Australia4,Economic and "abo$r elationseview, vol2, no25, pp2 E67JE72


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E Low-paid workers, changing patterns of work and life participation in (": A discussion starter

30, L", Casper, $, Lockwood, A, Bordeau, C M Brinle0,A, 566, H$ork and fail0 research in&OB.OB: Content anal0sis and review of the literature ;?76J5665ual Opportunities Coission 566@, %orking o$tside the bo3: Changing work to meet the f$t$re, >ual

Opportunities Coission, viewed 5? Octo3er56678http:..www2e>ualit0huanrights2co.ocuents.OC.P#.Research.workingToutsideT3o

2pdf92#rais, +, 1ittlean, G2 M o0ce, G ??? HCorrelates of training: An anal0sis using 3oth eplo0er andeplo0ee characteristics4, Ind$strial and "abor elations eviewvol2E, no2E, pp2EEJD52

+all, R, Bretherton, " M Buchanan, 5666, >It?s not my problem>: 7on#standard work and &ocational Ed$cationand 'raining in A$stralia, Australian !ational "raining Authorit0 and !ational Centre for (ocationalducation Research, Adelaide2

+ancock, L 566, HBreaking down the polic0 silos: "LGs, training and co3ating the social eclusion ofolder workers4, paper presented to "ransitions and Risk: !ew irections in )ocial Polic0 Conference,5EJ5 #e3ruar0 566, Gel3ourne2

NN566D, HGature workers, training and using "LG fraeworks4,A$stralian 6$lletin of "abo$r,vol2E5, no2E,pp25@J5@?2

+arding, A, Pa0ne, A, !gu (u, U M Percival, R 566D, Interactions between wages and the ta3@transfer system,Report Coissioned 30 the Australian #air Pa0 Coission, !A")G, 'niversit0 of Can3erra,

Can3erra, viewed 5? Octo3er 5667 8http:..www2fairpa02gov2au.!R.rdonl0res.@##?-6@@A-76-776@-D5D?56B.6.&nteractions3etweenwagesandthetatransfers0steT!A")G2pdf92+arding, A2 M Richardson, ) ???, H"he lowl0 paid, the uneplo0ed and fail0 incoes4,A$stralian .o$rnal

of "abo$r Economics, vol2E, no2, pp2 5EJD2+aukka, ), Keating, M La3 ), 566,Alternative mechanisms to enco$rage individ$al contrib$tions to vocational

ed$cation and training, !C(R, Adelaide2+eal0, M Richardson, ) 566D,An -pdated +rofile of the 2inim$m %age %orkforce in A$stralia, Report

coissioned 30 the Australian #air Pa0 Coission, Research Report !o2 .6D, Gel3ourne2+ousehold &ncoe and La3our 0naic ;+&LA< 566J6, 0o$sehold Income and "abo$r ynamics in

A$stralia )$rvey, Gel3ourne &nstitute of Applied conoic and )ocial Research, Gel3ourne2+o>ue, K M Bacon, ! 5667, H"rade unions, union learning representatives and eplo0er-provided-training

in Britain4, 6ritish .o$rnal of Ind$strial elations;forthcoingual Opportunit0 Coission 566@, It?s abo$t time: %omen, men, work and family,

+ROC, )0dne02&nstitute for $oen4s Polic0 Research 5667, )tat$tory ro$tes to workplace fle3ibility in cross#national perspective,

&$PR, $ashington2Karlin, CA, ngland, P M Richardson, G 5665, H$h0 do Vwoen4s /o3sW have low pa0 for their

educational levelI4 8ender Iss$es, vol256, no2, pp2EJ552Linsle0, & 566, HCauses of over-education in the Australian la3our arket4, Research paper no2?6,

epartent of conoics, "he 'niversit0 of Gel3ourne, Gel3ourne2Long, G M )hah, C 5667, +rivate ret$rns to vocational ed$cation and training *$alifications, !C(R, Adelaide2L0ons, G M )ith, G, HLa erit and the fair pa0 wars: &s pa0 e>uit0 Vslippin4 awa0WI4 paper presented at

the Dth Pacific plo0ent Relations Association Conference, Adelaide, J@ !ove3er 566D2Gaconald, G, Phipps, ) M Leth3ridge, L 566, H"aking its toll: "he influence of paid and unpaid work on

woen4s well-3eing4, #einist conoics, vol2, no2, pp2DEJ?2Gasteran-)ith, + M Pocock, B 5667, "iving low paid: 'he dark side of prospero$s A$stralia, Allen M 'nwin,

)0dne02

Gc1uinness, ), #ree3airn, M Gavroaras, K 566@, Characteristics of minim$m wage employees, rev2 edn, ul0566@, research report no2 5.6@, coissioned 30 the Australian #air Pa0 Coission, Gel3ourne,2

GcGahon, C 5667 HLow-paid workers and (": &ncreasing (" participation aongst lower paid workersover the life c0cle4, report of initial stakeholder conversations, 5667, unpu3lished paper, Centre for

$ork % Life, Adelaide2Giller, P$ 566, H"he role of gender aong low-paid and high-paid workers4,A$stralian Economic eview,

vol2E7, no2, pp26J@2Goskos, G 566@, %orkforce participation in )o$th A$stralia: &oices from the margin2 !ational &nstitute of La3our

)tudies, Adelaide2Guford, K M )ith, P 566, Ho3 reallocation, eplo0entchange and average /o3 tenure: "heor0 and

workplace evidence fro Australia4, )cottish .o$rnal of +olitical Economy, , no2E, pp265-52O4Connell, G 566, H"he role of training in preventing the la3our arket eclusion of older workers4,

paper presented to "ransitions M Risk: !ew irections in )ocial Polic0 Conference, 5EJ5 #e3ruar0

566, Gel3ourne2


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Pocock E

OC ;Organisation for conoic Cooperation and evelopent< 566a, HCo-financing lifelonglearning: "owards a s0steic approach4, OC, Paris2

NN5663, HA catalogue of recent lifelong learning co-financing initiatives4 uropean learning accountpartners4 !etwork, &kei2

NN566D,Employment o$tlook boosting Bobs and incomes =

Learning as an Afforda3le &nvestent &nternational Conference, OC, Canada2(ictorian 1overnent 5667 )ec$ring o$r f$t$re economic prosperity: isc$ssion paper on skills reform, (ictorian

1overnent, Gel3ourne2$atson, & 5667, )kills in $se: "abo$r market and workplace trends in skills $sage in A$stralia, !ew )outh $ales

epartent of ducation and "raining M Australian epartent of ducation, plo0ent and$orkplace Relations, )0dne02

$atson, &, Buchanan, , Cap3ell, & M Briggs, C 566E, /ragmented f$t$res: 7ew challenges in working life,"he#ederation Press, )0dne02

$atson, L 566, HPathwa0s and road3locks: Challenges for education polic0 in a changing la3our arket4paper presented to "ransitions M Risk: !ew irections in )ocial Polic0 Conference, 5EJ5 #e3ruar0566, Gel3ourne2

$est, A, )parkes, , Bala3anov, " M lson-Rogers, ) 5666, Heand side financing: A focus on vouchersin post-copulsor0 education and training: iscussion paper and case studies4, C#OP,

"hessaloniki2$ur3urg, 1, 5665, H#inancing echaniss for ("4, proceedings fro the 5665 KR&(" &nternational

Conference on (ocational ducation and "raining, pp27JE@, Korea Research &nstitute for (ocationalducation and "raining ;KR&("


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ED Low-paid workers, changing patterns of work and life participation in (": A discussion starter

Appendi : OC estiates of

low pa0 aongst full-tieeplo0ees, percentages, id ??6s

and 566EJ6

Mid-1990s 2003/04

Sweden 5.7 6.4Italy 8.1 7.5

Portugal 15.5 8.4

Denmark 7.3 9.3

Belgium 13.3 12.5

Australia 13.5 13.6

Ireland 23.5 13.7

France 13.9 14

Japan 15.5 14.4

New Zealand 14.5 14.7

Czech Republic 14.4 15.1

Greece 14 15.1

Spain 17.7 15.2

Germany 11.6 15.8

Netherlands 11 16.6

Poland 17.6 22.1

Canada 22.3 22.3

United States 25.1 23.3

United Kingdom 19.5 23.4

Hungary 20.8 24.4

Korea 23.2 24.5

Source: OECD (2006, p.175, refer to Statlink ).


37/40

Pocock E@

Appendi 5: stiates of the

incidence of low pa0 in Australia,appl0ing different definitions

Year Incidence Number Measure

198182 14.5%

(men 1564 yrs, women1559 yrs)

0.73m employees

2/3 of median hourly wage. Excludes self-employed and those with pay rates lessthan $1/hr.a

198586 14.0%


0.81m employees

198990 13.0%


0.84m employees

199495 14.1%


0.98m employees

199596 14.1%


0.98m employees

199596 15%

(all employees)

$10/hr for adults (21 yrs and over) and$6/hr for those under 21 yrs. Using imputedusual hourly wage data, with a cap of 40hrs per week. Excludes self-employedworkers.b

1995 19.1%

(2159 yrs)

0.98m employees

$10/hr for adults (2159 yrs) indexedannually from 199497. Using imputedusual hourly wage data. Excludes full-timestudents.c

1996 18.1%

(2159 yrs)

1.01m employees

1997 18.3%

(2159 yrs)

1.03m employees

2003 19.8%

(over 20 yrs)

Hourly rates between the federal minimumwage and the base tradespersons wage(C10), adjusted for casual loadings.d

2006 Approx. 25%(1565 yrs)

1.93m employees Wages below $15.50/hr. Excludes full-timestudents aged 1624 living with parents.e

2007 12.9%

(21 yrs and over)

Wages within 10% of the federal minimumwage (less than $13.15/hr or $500/wk in2004). Excludes working proprietors andemployees with zero earnings.f

Notes: aUsing ABS Survey of Income and Housing Costs (Eardley 2000, p. 313).bUsing combined 1994/95 and 1995/96 unit record files of the ABS Income and Housing Costs and Amenities,Australia survey (Harding and Richardson 1999, pp. 267).cUsing 199497 ABS Survey of Employment and Unemployment Patterns (Dunlop 2000, p. 13).dUsing HILDA data (2003).eHarding et al. (2006).fMcGuiness Freebairn & Mavromaras (2007) used the ensuing annual wave of the HILDA survey that the 2003Commonwealth Government estimate was based on. They use a different definition and methodology producing

a rate of low pay, which they suggest may be an underestimate.


38/40


Appendi E: )oe eaples of

polic0 responses+repared by athy Edwards and .$de Elton, Centre for %ork D "ife

Learning accounts and education and training vouchers

O4Connell ;566uiring education in a range of countries2 "heost coprehensive stud0, in ters of 3readth, 3ut not in depth, is a catalogue of initiativesproduced 30 the OC in 566 ;OC 5663


39/40

Pocock E?

a0 not 3e a3le to afford individual contri3utions2 "he0 stress the need for advocac0 ;perhapsperfored 30 unions< to encourage eplo0er contri3utions2 &n addition the0 suggest thatindividual contri3utions should 3e ta-deducti3le2 #inall0 the0 caution that assistance needs to 3egiven to individuals so that the0 choose training that will ost eet their needs and provide3enefits2 )chuete ;566@< akes the o3servation that such accounts are not reall0 a3out lifelong

learning, 3ut instead address onl0 isolated and specific instances of training provision2 +e alsonotes that the accounts usuall0 onl0 etend to course fees, and thus other costs ;such astransport, aterials, etc2< are left to the individual ;)chuete 566@, p2


40/40

schees2 +owever, in )weden, siilar progras have not et the sae o3stacles ;+aukka,Keating M La3 566, p2DEuiring financial aid and stud0 tie fortraining activities, as well as to ensure the direct relevance of training ;aking it ore accepta3leto all parties< is to link it directl0 to work and the workplace2 "his includes the traditional odelof apprenticeship, 3ut oves 3e0ond this to ore Hodern4 odels that allow for the skillingand re-skilling of a range of workers at a range of levels and life stages2

Often workplace-3ased training is linked directl0 with Hrecognition of prior learning RPL42)ith ;5667< notes that RPL is H3oth well known and o3scure4 ;)ith 5667, p2uit0 of assessent, and aintenance of standards2 )ith;5667, pp25JE< also reports on another de3ate in the literature, 3etween those who clai failure

and success in the ipleentation of RPL progras2 Of course RPL has now had etensiveapplication in soe eaples in Australia2

'nion-facilitated learning

&n soe countries unions pla0 a significant role the in vocational education s0stes2 &n Australiathe0 have generall0 not 3een direct providers of vocational education, with soe eceptions: foreaple, soe unions are now registered training providers2 "he0 have, however, 3een activeadvocates for vocational education of various fors, including for low-paid workers2

'nions have pla0ed a larger role in direct provision of (" in the 'nited Kingdo2 "his role

has had a nu3er of eleents including prooting training to e3ers, providing counselregarding opportunities and including training opportunities in 3argaining processes ;+o>ue MBacon 5667

ba 104.low pay jobs (b. pockoc)

Documents