This volume, part of a series of mongraphs that explore the relationship between the economy and schooling, analyzes the economic influences contributing to current pressures for changes in secondary schooling in Australian society with particular attention to the long-term structural collapse of the full-time teenage labor market. After a brief introduction, the paper addresses current dislocations in the transition from student to employee that have resulted in widespread teenage unemployment. The full-time and part-time teenage labor markets are analyzed in detail, along with trends in unemployment and nonparticipation, and the government's response to the youth unemployment crisis. The latter part of the paper addresses the need for fundamental reform in secondary schooling to accommodate these structural changes in the economy. Five readings by separate authors follow: (1) "Where Are We Now in the Economics of Education?" by M. Blaug; (2) "Major Theories of the Labor Market and Women's Place Within It," by C. O'Donnell; (3) "The Incompatibilities of the Welfare State," by G. Esping-Andersen; (4) "The Participation and Equity Program: One Year On," by D. Pettit; and (5) "Traineeships for Youth," a report of the Committee of Inquiry into Labor Market Programs. An annotated bibliography is included. (TE)