This report provides an overview of the economics of vocational education and training (VET) in Australia and on the changes and policy development in VET over the past decade. The book is organized in seven chapters, with the first chapter providing an overview of the scope, background, and changes of VET in Australia during the 1990s, as well as an overview of the whole document. Chapter 2 examines the changing nature and patterns of employment in Australia, focusing on the emergence of the knowledge economy, the confluence of the forces of globalization and rapid technological change, and the organizational and political responses to these trends. Chapter 3 examines the demand for VET and how the demand from individuals and employers translates into forecasts of the demand for places in VET provider institutions. Chapter 4 then focuses on the supply of VET in Australia and the efficiency of the delivery system. Chapter 5 homes in on these five specific issues on the supply side: intersectoral aspects, VET in schools, VET in adult and continuing education, regional aspects of VET provision, and VET teachers. Chapter 6 is concerned with finance and market issues in VET, including institutional funding by the public and private providers. The final chapter looks at these four matters: (1) a consolidation of some of the major findings of the book; (2) gaps in current research on the economics of VET in Australia; (3) equity performance and challenges of the VET system; and (4) whether research affects VET policy and practice and if so, how and how can relationships be improved. The report includes 34 tables, 10 figures, and 4 boxes and contains 334 references. (KC)