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Labor market returns to college education with vocational qualifications

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  • Rzepka, Sylvi

Abstract

In this paper, I assess labor market returns of a substantial skill upgrade: college enrollment of the vocationally trained, non-traditional students who do not have the formal entry requirement. Using propensity-score adjusted regressions and the National Educational Panel Study, I find that these enrollees face high opportunity costs as they forgo earnings during the enrollment period. In the long-run, enrollees tend to obtain higher cumulative earnings than those who continue with a vocational training-based career, but, there is a large degree of uncertainty. On the positive side, enrollees attain jobs with a higher reputation in society, hinting at sizable non-monetary returns.

Suggested Citation

  • Rzepka, Sylvi, 2018. "Labor market returns to college education with vocational qualifications," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 26(4), pages 411-431.
    • Handle: RePEc:zbw:espost:180688
    DOI: 10.1080/09645292.2018.1440532
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    Cited by:

    1. Somani, Ravi, 2021. "The returns to higher education and public employment," World Development, Elsevier, vol. 144(C).
    2. Celeste K. Carruthers & Christopher Jepsen, 2020. "Vocational Education: An International Perspective," CESifo Working Paper Series 8718, CESifo.
    3. Seema Sangita, 2021. "Higher Education, Vocational Training and Performance of Firms," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 15(1), pages 122-148, February.
    4. Marwa Sahnoun & Chokri Abdennadher, 2022. "Returns to Investment in Education in the OECD Countries: Does Governance Quality Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1819-1842, September.
    5. Huang, Bin & Xu, Lei & Zhu, Yu, 2019. "Does the higher education expansion in the UK reduce the returns to education? A comparison of returning-from-work versus fresh out-of-school graduates," Economic Modelling, Elsevier, vol. 79(C), pages 276-285.

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    More about this item

    Keywords

    Non-traditional students; vocational training; tertiary education; Germany;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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