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Labour market effects of the polytechnic education reform: The Finnish experience

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  • Böckerman, Petri
  • Hämäläinen, Ulla
  • Uusitalo, Roope

Abstract

This paper evaluates the labour market effects of the introduction of the polytechnic education system in Finland. The polytechnic reform gradually transformed former vocational colleges into polytechnics. Since the timing of the reform differed across schools, we can compare the performance of polytechnic graduates to the performance of vocational college graduates controlling for both the year and the school effects. The results are somewhat sensitive to how the selectivity issues are treated but generally suggest that both the earnings and the employment levels of post-reform graduates are higher in the field of business and administration. The effects are much smaller and usually insignificant in other fields.

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Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 28 (2009)
Issue (Month): 6 (December)
Pages: 672-681

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Handle: RePEc:eee:ecoedu:v:28:y:2009:i:6:p:672-681

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Web page: http://www.elsevier.com/locate/econedurev

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Keywords: Vocational education Polytechnic education School reform Return to education;

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References

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  1. Costas Meghir & Mårten Palme, 1999. "Assessing the effect of schooling on earnings using a social experiment," IFS Working Papers W99/10, Institute for Fiscal Studies.
  2. Eric Maurin & Sandra McNally, 2007. "Educational Effects of Widening Access to the Academic Track: A Natural Experiment," CEE Discussion Papers 0085, Centre for the Economics of Education, LSE.
  3. Margo, Robert A. & Aldrich Finegan, T., 1996. "Compulsory schooling legislation and school attendance in turn-of-the century America: A 'natural experiment' approach," Economics Letters, Elsevier, vol. 53(1), pages 103-110, October.
  4. Uusitalo, Roope, 1999. "Return to education in Finland," Labour Economics, Elsevier, vol. 6(4), pages 569-580, November.
  5. Andrew M. Gill & Duane E. Leigh, 2000. "Community college enrollment, college major, and the gender wage gap," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(1), pages 163-181, October.
  6. Douglas Staiger & James H. Stock, 1994. "Instrumental Variables Regression with Weak Instruments," NBER Technical Working Papers 0151, National Bureau of Economic Research, Inc.
  7. Harmon, Colm & Walker, Ian, 1995. "Estimates of the Economic Return to Schooling for the United Kingdom," American Economic Review, American Economic Association, vol. 85(5), pages 1278-86, December.
  8. Costas Meghir & Mårten Palme, 2004. "Educational reform, ability and family background," IFS Working Papers W04/10, Institute for Fiscal Studies.
  9. Kane, Thomas J & Rouse, Cecilia Elena, 1995. "Labor-Market Returns to Two- and Four-Year College," American Economic Review, American Economic Association, vol. 85(3), pages 600-614, June.
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Cited by:
  1. Haapanen, Mika & Böckerman, Petri, 2013. "Does Higher Education Enhance Migration?," IZA Discussion Papers 7754, Institute for the Study of Labor (IZA).
  2. Böckerman, Petri & Haapanen, Mika, 2011. "The effect of polytechnic reform on migration," MPRA Paper 34619, University Library of Munich, Germany.
  3. Petri Böckerman & Mika Haapanen, 2011. "The effect of education on migration: evidence from school reform," ERSA conference papers ersa10p994, European Regional Science Association.

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