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Earnings, Schooling and Vocational Education and Training

Author

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  • Thorsten Stromback

    (Curtin University)

Abstract

Young persons who do not go on to university face two main educational choices; whether to complete Year 12 and/or whether to undertake a vocational (VET) qualification. These two choices are independent. Both early leavers and completers may subsequently obtain a VET qualification. However, the parametric models that are commonly used to analyse the causal effect of education presume that educational attainments form an ordered sequence. This has the effect of restricting the effects of educational attainments on earnings. This paper departs from this restrictive approach. It estimates the effect of Year 12 completion and VET qualifications on early career earnings using both a single and multiple treatment-effect approach. By using matching methods to estimate these effects, it also allows for the effects of educational qualifications differ between persons. It is found that neither completion of Year 12 nor a VET qualification has an effect on early career earnings over and above the forgone experience.

Suggested Citation

  • Thorsten Stromback, 2010. "Earnings, Schooling and Vocational Education and Training," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 13(3), pages 241-263.
    • Handle: RePEc:ozl:journl:v:13:y:2010:i:3:p:241-263
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    References listed on IDEAS

    as
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    3. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, March.
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    6. Andrew Leigh, 2008. "Returns To Education In Australia," Economic Papers, The Economic Society of Australia, vol. 27(3), pages 233-249, September.
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    11. Chris Ryan & Louise Watson, 2004. "Year 12 Completion and Retention in Australia in the 1990s," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(4), pages 481-500, December.
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    Cited by:

    1. Sarah Tumen & Sarah Crichton & Sylvia Dixon, 2015. "The Impact of Tertiary Study on the Labour Market Outcomes of Low-qualified School Leavers," Treasury Working Paper Series 15/07, New Zealand Treasury.
    2. Tumen, Sarah & Dixon, Sylvia & Crichton, Sarah, 2018. "The Impact of Tertiary Study on the Labour Market Outcomes of Low-qualified School Leavers: An update," Treasury Working Paper Series 18/03, New Zealand Treasury.

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    More about this item

    Keywords

    Wage Level and Structure; Wage Differentials; Human Capital; Skills; Occupational Choice; Labour Productivity;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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