The Role of government in qualifications systems

Abstract

This thesis investigates the role that government should have in qualifications systems. Qualifications and qualifications systems are first defined. There is a summary of the relevant literature. Several fields of study are covered as the policy issue is broad. Aspects of interest arise in the fields of regulatory systems, political science, the economics of regulation, and the economics of education. There is more detailed discussion on some aspects of the literature. In particular, Human Capital theory in relation to qualifications, the information aspects of qualifications, including a discussion on signalling and screening theory, regulatory frameworks and occupational licensing are more fully elaborated. A new model of 'matching' is developed from screening theory. Matching offers some predictive ability for employer selection behaviours. The basis for these behaviours is related to the type of information conveyed within the qualification. The matching approach to selection would appear to have policy implications for more efficient labour market selection and for strategies that could be investigated to reduce the problem of credentialism. A range of variables used in the construction of a qualifications system is outlined. These variables are then used to construct three models of qualifications systems which represent very different levels of intervention in the qualifications market. There is some discussion of these models. The literature survey, matching theory and the three models for government intervention in qualifications systems are then applied in the New Zealand context. The National Qualifications Framework and the New Zealand Qualifications Authority, in particular, are evaluated in relation to the theoretical work.