The paper outlines first an account of the specific features of the Austrian VET system in a comparative European perspective, gives second a set of evaluation criteria for strengths and weaknesses, and turns third to some issues and contradictions of policy development. Attention is given to sub-national differences, and to policy issues related to them.

The Austrian VET-system has a quite idiosyncratic structure that includes the following features:

- a very high proportion of upper secondary level VET students, and an early transition into VET

- a hierarchically tracked three-tiered structure of VET including strong apprenticeship and strong full-time VET schools

- a very complex governance system of VET

- a selection pipeline that relates VET in specific ways to the tracked lower secondary level as well as to higher education with the upper secondary VET colleges providing full entitlements for university access

- a very strong political commitment to combat youth unemployment mainly by employment related measures (apprenticeships and active labour market policies)

- a relatively weak higher education system, in particular in the science and engineering field

- average participation in adult education, with a strong “Matthew-effect”

- achievement outputs measured by the international large scale assessments are on an average level, and strongly related to the hierarchical school structure and to students’ background variables

- economic outcomes in terms of income are mixed, effects on employment and unemployment tend to be stronger.

Overall, in a comparative perspective, the system can be termed as a medium skills system that produces outputs and outcomes at an average level. Outstanding are particularly two aspects: comparatively low youth unemployment rates and low participation in higher education. Evaluation criteria can be taken from different theoretical approaches, and can subsequently focus on different aspects and dimensions. Concerning economic criteria the Austrian system does not score very well if the models of “new growth theory” related very much to innovation and the inputs provided by research and development based on the various contributions of higher education are considered, however, in terms of more traditional indicators of growth, employment and productivity, Austria scores very well in most comparative benchmarking procedures. Because of the strong apprenticeship system, and the strong relationship of VET schools and polytechnics to the economic players also, the medium skills system scores well if approaches of diffusion of innovation are taken. Concerning equity criteria the picture is worse, as severe impediments to equality of opportunity are indicated by international comparisons.

Coming to policy questions, the different evaluation criteria are reflected in the discourses that are based on different interest constellations. Thus, there is very little movement in VET policies in recent times. We want to explore in this paper, whether there is sufficient evidence available in order to support policy moves in certain directions.

Conceptually we outline how theoretical propositions concerning efficiency and equity are translated into stylized evidence, and we ask what follows from these arguments for policy action. At the empirical level, we look at the available qualitative and data, trying to separate out what can be considered as evidence.

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