IDEAS home Printed from https://ideas.repec.org/p/cep/cverdp/002.html
   My bibliography  Save this paper

Labour Market Returns to Vocational Qualifications in the Labour Force Survey

Author

Listed:
  • Steven McIntosh
  • Damon Morris

Abstract

This report uses data from the Labour Force Survey covering the period 1997-2015, to estimate wage premiums, or returns, to acquiring vocational qualifications. Different specifications of the wage equations are estimated, alternatively considering individuals who hold each qualification as their highest, and also the average returns across all individuals who hold a qualification whether or not it is their highest. The key message that comes out of the results, is that there is substantial variation in the estimated returns to vocational qualifications, across types of qualifications, levels, study subjects, and across points of the wage distribution. It is therefore not the case that a simple message about the returns to vocational qualifications can be delivered. Future work in this area needs to explain this variation in the value of vocational education.

Suggested Citation

  • Steven McIntosh & Damon Morris, 2016. "Labour Market Returns to Vocational Qualifications in the Labour Force Survey," CVER Research Papers 002, Centre for Vocational Education Research.
    • Handle: RePEc:cep:cverdp:002
    as

    Download full text from publisher

    File URL: https://cver.lse.ac.uk/textonly/cver/pubs/cverdp002.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Steven Mcintosh, 2006. "Further Analysis of the Returns to Academic and Vocational Qualifications," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(2), pages 225-251, April.
    2. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, March.
    3. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    4. Lorraine Dearden & Leslie McGranahan & Barbara Sianesi, 2004. "An In-Depth Analysis of the Returns to National Vocational Qualifications Obtained at level 2," CEE Discussion Papers 0046, Centre for the Economics of Education, LSE.
    5. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    6. Dearden, Lorraine, et al, 2002. "The Returns to Academic and Vocational Qualifications in Britain," Bulletin of Economic Research, Wiley Blackwell, vol. 54(3), pages 249-274, July.
    7. Charley Greenwood & Andrew Jenkins & Anna Vignoles, 2007. "The Returns to Qualifications in England: Updating the Evidence Base on Level 2 and Level 3 Vocational Qualifications," CEE Discussion Papers 0089, Centre for the Economics of Education, LSE.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li Dai & Pedro S. Martins, 2020. "Does vocational education pay off in China? Instrumental-variable quantile-regression evidence," Working Papers 100, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    2. Gavan Conlon & Sophie Hedges & Pietro Patrignani, 2018. "Further analysis of the earnings differentials associated with BTECs," CVER Briefing Notes 006, Centre for Vocational Education Research.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jo Blanden & Franz Buscha & Patrick Sturgis & Peter Urwin, 2010. "Measuring the Returns to Lifelong Learning," CEE Discussion Papers 0110, Centre for the Economics of Education, LSE.
    2. Blanden, Jo & Buscha, Franz & Sturgis, Patrick & Urwin, Peter, 2012. "Measuring the earnings returns to lifelong learning in the UK," Economics of Education Review, Elsevier, vol. 31(4), pages 501-514.
    3. Oliver Anderson, 2022. "Walking the line: Does crossing a high stakes exam threshold matter for labour market outcomes?," CEPEO Working Paper Series 22-05, UCL Centre for Education Policy and Equalising Opportunities, revised Apr 2022.
    4. Harmon, Colm & Hogan, Vincent & Walker, Ian, 2003. "Dispersion in the economic return to schooling," Labour Economics, Elsevier, vol. 10(2), pages 205-214, April.
    5. Hector Espinoza & Stefan Speckesser, 2019. "A Comparison of Earnings Related to Higher Level Vocational/Technical and Academic Education," National Institute of Economic and Social Research (NIESR) Discussion Papers 502, National Institute of Economic and Social Research.
    6. Balestra, Simone & Backes-Gellner, Uschi, 2017. "Heterogeneous returns to education over the wage distribution: Who profits the most?," Labour Economics, Elsevier, vol. 44(C), pages 89-105.
    7. Anna Vignoles & Augustin De Coulon & Oscar Marcenaro-Gutierrez, 2011. "The value of basic skills in the British labour market," Oxford Economic Papers, Oxford University Press, vol. 63(1), pages 27-48, January.
    8. Colm Harmon & Hessel Oosterbeek, 2000. "The Returns to Education: A Review of Evidence, Issues and Deficiencies in the Literature," CEE Discussion Papers 0005, Centre for the Economics of Education, LSE.
    9. Verhaest, Dieter & Omey, Eddy, 2009. "The relation between formal education and skill acquisition in young workers first job," Working Papers 2009/07, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    10. Hector Espinoza & Stefan Speckesser, 2019. "A comparison of earnings related to higher level vocational/technical and academic education," CVER Research Papers 019, Centre for Vocational Education Research.
    11. Steven McIntosh & Damon Morris, 2021. "Variation in the labour market rewards to vocational qualifications in the UK," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(5), pages 535-552, November.
    12. Gavan Conlon & Sophie Hedges & Pietro Patrignani, 2018. "Settling the counterfactual debate: Is there a preferable counterfactual when estimating the returns to vocational qualifications?," CVER Research Papers 013, Centre for Vocational Education Research.
    13. repec:ucn:wpaper:10197/1101 is not listed on IDEAS
    14. Katarzyna Growiec & Jakub Growiec, 2016. "Bridging Social Capital and Individual Earnings: Evidence for an Inverted U," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 601-631, June.
    15. Kaspar W thrich, 2013. "Set Identification of Generalized Linear Predictors in the Presence of Non-Classical Measurement Errors," Diskussionsschriften dp1304, Universitaet Bern, Departement Volkswirtschaft.
    16. Schultz, T. Paul, 2009. "The Gender and Generational Consequences of the Demographic Transition and Population Policy: An Assessment of the Micro and Macro Linkages," Working Papers 71, Yale University, Department of Economics.
    17. Aidis, Ruta & van Praag, Mirjam, 2007. "Illegal entrepreneurship experience: Does it make a difference for business performance and motivation?," Journal of Business Venturing, Elsevier, vol. 22(2), pages 283-310, March.
    18. Sandra Nieto & Raúl Ramos, 2013. "Non-Formal Education, Overeducation And Wages," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 21(1), pages 5-28, Spring.
    19. Galama, Titus & Kapteyn, Arie, 2011. "Grossman’s missing health threshold," Journal of Health Economics, Elsevier, vol. 30(5), pages 1044-1056.
    20. Cawley, John & Morrisey, Michael A., 2007. "The earnings of U.S. health economists," Journal of Health Economics, Elsevier, vol. 26(2), pages 358-372, March.
    21. Ilhom Abdulloev & Ira N Gang & Myeong-Su Yun, 2014. "Migration, Education and the Gender Gap in Labour Force Participation," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 509-526, September.

    More about this item

    Keywords

    vocational education; wages; labour market;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cep:cverdp:002. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://cver.lse.ac.uk/publications/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.