Australian higher education equity policy and analysis tends towards cultural explanations of differences in higher education participation rates. The official definition of low socio-economic status is based on the ABS Index of Education and Occupation, not direct financial factors. Parental education and occupation provides a role model for their children and shapes the expectations parents have for their children. University-educated parents can also more easily help their children navigate the path to university.
The relationship between parental education and child outcomes has occasionally led to suggestions that ‘first in family’ – the children of parents who have not been to university – should be an official equity group. There was another such call in an article in The Conversation last week, based on a recent academic journal article by Sally Patfield, Jenny Gore, and Natasha Weaver.
Is first in family at university unusual?
Although the data is rarely released, parental education has been in the official enrolment data collection since 2010. In some figures I have from 2015, of the students who reported parental education first in family were just in the majority, at 50.1 per cent. But the true number was probably significantly higher, with don’t knows or missing data from about 15 per cent of enrolments. At minimum these students had parents who did not regale them with ‘when I was at uni’ anecdotes, blocking one path of influence on educational choices.
If we think back on the history of higher education first in family could never have been unusual. With each generation experiencing much higher participation rates than the one before it, large numbers of students must have had parents who didn’t go to university. According to figures in Anderson and Vervoon’s Access to Privilege, at Melbourne University in the 1960s and 1970s around a quarter of the fathers and 10 per cent of mothers of students had a university qualification – high for the era, but still leaving a big majority of students as ‘first in family’.
The annual cohort completions statistics published by the Department of Education show that low SES students complete courses as lower rates than medium or high SES students. On the most recent figures 67 per cent of low SES commencing students had completed a degree by nine years after commencement. The equivalent figures were 72 per cent for medium SES students and 78 per cent for high SES students.
Their analysis suggests, as seen in the chart below, that receipt of Youth Allowance or Austudy is associated with increases in completion at the six-year point for students in all but the most advantaged areas, with the largest effects for students living in areas with the greatest levels of economic disadvantage.*
The analysis of the results is quite brief, making it hard to fully understand the effects of student income support. If I understand them correctly, they have controlled for full- or part-time study status. However, I would see getting students to study full-time as a major benefit of student income support. In the Grattan Institute dropping out analysis, studying part-time is the single biggest completion risk, and this is supported by the Department’s analysis, which includes additional variables Grattan did not have.
From the start Australia’s universities served multiple purposes, with on-going tensions between knowledge for its own sake, typically most strongly supported by academics, and meeting practical needs, typically most strongly supported by governments.
At the 1920 meeting that Croucher and Waghorne mark as the start of a national organisation of universities, University of Sydney Chancellor Sir William Cullen warned against ‘adopting too enthusiastically the current preoccupation with ideas of “national efficiency”‘.
Mandler argues that in Britain a national higher education system emerged out of a ‘patchwork of institutions dating back to the middle ages’. Although local funding has been part of higher education finance in Britain, national funding was more significant early in the 20th century, and dominated the post-WW2 expansion of higher education. Universities were linked in a common funding system.
Free or consistently-priced undergraduate education across Australia since 1974, along with means-tested student income support, has not fundamentally changed the largely regional nature of Australian higher education. Most students attend universities in their state, and usually in their home city. Australia’s admission systems remain state-based.
The Australian university system in 2020 is in many ways very different from what it was in 1920. But despite the transformations some issues recur repeatedly over the decades, which I will discuss further in a later blog post. I will start with what has changed the most, prompted by the Croucher and Waghorne book, but adding other material and my own take on events.
As the policy name ‘Job-ready Graduates’ suggests, the main stated reason for changes to student contributions is to promote graduate employment outcomes. Or as the JRG discussion paper puts it ‘incentives in the current funding system could encourage sub-optimal choices for students and institutions, leading to poorer labour market outcomes and returns on investment in higher education.’ The assumption is that if arts becomes more expensive students will instead choose a course with lower student contributions and better employment prospects.
Employment outcomes can be measured in many ways, but every method shows that graduates in fields typically taught in Arts faculties are at an elevated risk of disappointing outcomes.
Whatever the reasons for 1970s educational trends, in the 1980s rates of school completion rapidly increased, as the chart below shows. According to Simon Marginson’s book Educating Australia, increasing the proportion of students completing Year 12 was a deliberate policy goal, supported by state governments and the Commonwealth.
With these older teenagers, in the 1980s compulsion was not a politically acceptable policy tool for increasing school retention. As recently as 2007 in Victoria and 2009 in NSW the school leaving age was still only fifteen. Incentives were needed. According to Marginson, the Commonwealth significantly extended income support for secondary school students, with recipient numbers increasing six-fold between 1982 and 1990.
Despite its title, Mandler’s book does not neatly belong to either educational merit genre; it neither bemoans the excessive influence of academic ability in allocating social and economic goods, nor laments the decline of academic standards in schools and universities. Instead, its core theme is how changing attitudes, aspirations and expectations drove up British educational participation and attainment after WW2. There are many interesting parallels with Australia.
How performance funding will work under Job-ready Graduates remains unclear, to me at least. Some recently published FAQs on Job-ready Graduates, which are a cut-and-paste from a previous statement, indicate that performance funding will continue:
From 2021, the PBF scheme will be adjusted to make approximately $80 million amount of growth funding per year contingent on performance requirements. Performance funding will grow each year to a total equivalent to 7.5 per cent of funding for domestic, non‑medical bachelor places to incentivise university performance. This measure is in line with the PBF model implemented in 2020. [emphasis added]
Is performance funding a condition of other announced CGS increases?
The difficulties of introducing new money into a transitioning system
Between them, the two new allocations total about $550 million over the next four years, with the short course money lasting for two years.
The question is how this relates to the Job-ready Graduates transition fund. This fund is designed to leave universities with the same Commonwealth student-related funding for the next three years as if JRG had never happened.
The draft Commonwealth Grant Scheme Guidelines released at the end of last month set out how the transition fund will work. The Guidelines have several unclear and seemingly contradictory elements, which I discuss in a footnote.* But this is the basic formula for transition funding: