A study of the Australian higher education and vocational education and training (VET) sectors analyzed their education and training outputs (the education and training services and products provided by the sectors to other persons or entities) and outcomes (the effect of completion of a course provided by a sector for its clients). Data were derived from published national sources for the destinations of 1997 graduates in early 1998 to address the research questions in the study. Findings were extensive; some highlights include the following: (1) there is little difference in outcomes between the percentage of graduates from each sector employed following their courses; (2) in both sectors, employment outcomes are better for those completing higher level qualifications; (3) higher education graduates are concentrated in professional occupations while VET graduates are more evenly distributed across occupations, and this partially accounts for the higher wages of higher education graduates; (4) prior work experience enhanced employment outcomes, although holding a previous degree did not; (5) male and female higher education graduates enjoy similar positive outcomes, while male vocational education graduates fare much better than females; (6) although higher education graduates sometimes fared better than vocational training graduates, the differences could often be traced to major disadvantages of the vocational students before beginning study. Implications for government policy include maintaining educational subsidies for the public sector and adding employment activities during the course of study to improve employment outcomes. (Contains 32 references.) (KC)