Introduction: Australian Higher Education as an Industry

• Author: Ross Williams
• DOI: http://doi.org/10.1111/1467-8462.12331
• Published date: 01 June 2019
• Date: 01 June 2019

The Australian Economic Review, vol. 52, no. 2, pp. 212–216 DOI: 10.1111/1467-8462.12331

Policy Forum: Higher Education

Introduction: Australian Higher Education as an Industry

Ross Williams*

Abstract

This article provides an introduction to the

contributed articles in the Forum through an

overview of the structure of higher education

in Australia.

1. Preamble

A nation values higher education for its

contribution to economic development, both

directly through the training of a skilled work

force and research, and indirectly through its

contribution to personal development and the

promotion of a civil society. The three outputs

of the sector—student learning and training,

research, and external engagement—are va-

lued, albeit different stakeholders place dif-

ferent weights on the importance of types of

output. Governments value the contribution of

higher education to economic growth.

Domestic students value higher education for

personal development and improved job

prospects; international students have the

extra demand for international experience

and, for some, the possibility of resettlement.

Employers want staff with both generic skills

and skills specific to an industry, and research

that can assist in raising productivity and in

the development of new products. The article

begins with an overview of the scope and size

of the higher education sector. This is

followed by a summary of the demand and

supply for education and then for research.

The article concludes with a discussion of

productivity in the sector.

2. Industry Snapshot

The Australian higher education system

comprises 37 public universities, three private

universities, two overseas universities, one

‘university of specialisation’and 130 other

providers. Under the Australian Constitution,

education is a state matter, but since the mid‐

1970s most public funding for universities has

* Melbourne Institute, University of Melbourne, Victoria

3010 Australia; email <rossaw@unimelb.edu.au>.

© 2019 The University of Melbourne, Melbourne Institute: Applied Economic & Social Research,

Faculty of Business and Economics

Published by John Wiley & Sons Australia, Ltd