Melbourne Institute News December 2008 ISSN 1442-9500 (print)
ISSN 1442-9519 (online)
Print Post Approved PP381667/01204
Issue 22
Early Childhood Education: Director’s Opinion The Commonwealth will fund universal access to early childhood education for 15 hours a week in the year before a child commences school, delivered by a fouryear university degree-qualified teacher. However, it is debatable whether this is the best use of scarce resources (especially quality teachers) to maximise education outcomes.
Phillips Curve and the Equilibrium Rate of Unemployment This Working Paper discusses the negative relationship between wage inflation and the unemployment rate, and shows that the Australian equilibrium unemployment rate has been around 4.5 per cent. Page 3
Australian Innovation This article outlines some observations and opinions on innovation in Australia, based on data analysis from the IBM – Melbourne Institute ‘Innovation Index of Australian Industry’ and the Australian Patent Applications Scoreboard 2008. Page 5
Education and Skill Mismatches in the Labour Market During November the second workshop on Education and Skill Mismatches in the Labour Market 2008 was held in Melbourne. Page 7
Advances in neurological science, together with new data that allow researchers to track individuals over time, have improved our understanding of how skills are formed. US economist James Heckman and others argue that ‘skill begets skill, learning begets learning’ through a multiplier process. Children who start their education poorly are likely to remain disadvantaged throughout their education and through life. The development of both cognitive and non-cognitive skills can be affected. Non-cognitive skills relate to attributes like motivation, perseverance, selfesteem and self-control. Children’s skills and attitudes start to develop well before their school years. Their development reflects a wide range of parental and environmental factors, including in utero experiences. A substantial longitudinal study that addresses these issues is underway in the UK, the Effective Pre-school and Primary Education 3-11 Project (EPPE 3-11). Their most recent report finds that ‘the quality of the early years home learning environment (HLE) and parents’ (especially mothers’) qualification remain the most important background factors relating to a child’s attainment in Reading and Mathematics in year 5, followed by low birth weight, need for support with English as an additional language, early health or developmental problems and socio economic status’. A number of studies, including those using Australian data, Continued on page 2
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