Market coordination and training networks in Australia

Abstract

The development of voluntary networks of firms has been proposed as a way of stimulating employer demand for vocational training in more liberal market economies. The emergence of market-based training networks is seen to lead to greater inter-firm cooperation, resource sharing and facilitate employer collective action to address labour market needs. This study examines the evidence for the existence of voluntary training networks in five Australian industries. The study finds that these training networks supply limited amounts of training, most of which is non-formal. These networks are primarily developed for the dissemination of the tacit knowledge and skills needed for the exploitation of new technology. These networks have few linkages to the vocational training system and have a limited capacity to contribute to the development of transferable skills that address employers’ labour market needs.