Welfare Reform on the Web (August 2007): Education - UK - training

The impact of gaining an NVQ Level 2: will the Leitch Review recommendations address the low returns?

R. Page

Local Economy, vol. 22, 2007, p. 138-147

The New Labour government has identified productivity and skills as key drivers of social inclusion and economic growth. Recent policy initiatives such as Level 2 Entitlement and Train to Gain have focused on supporting people to gain Level 2 qualifications (broadly equivalent to five GCSEs graded A*-C), many of which have been National Vocational Qualifications (NVQs). This study assesses the impact (if any) that gaining an NVQ Level 2 is likely to have on earnings from work, and progression and promotion at work, by analysing data from the British Household Panel Survey. Results show that there is no significant net benefit from gaining an NVQ Level 2. These findings are considered in the light of the Leitch Review.