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Profitability of Vocational vs. Formal Education for Men and Women in Singapore Using Quantile Regressions

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Author Info

  • Chris Sakellariou

    (Division of Economics,School of Humanities and Social Sciences, Nanyang Technological University, Singapore)

Abstract

Singapore is among the countries who have well-developed vocational education and training programs. It follows a centralized planning model in which the needs of industry and business are closely matched to the output of the education system. This study examines the pattern of returns to formal vs. vocational education across quantiles. It is hypothesized that heterogeneity in “abilities” which contribute to higher earnings is related to schooling acquisition. It is found that marginal returns to formal education for both men and women as well as to vocational education for women in Singapore are higher for the more able, consistent with the notion that formal education and ability are compliments. Furthermore, women with secondary and post-secondary vocational qualifications enjoy higher wage increments than men with the same qualifications. On the other hand, men with polytechnic diplomas enjoy higher wage increments than women with the same qualifications. Overall, the results suggest that the vocational education system in Singapore has served women as well as men with secondary and post-secondary qualifications well.

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File URL: http://www.ntu.edu.sg/hss2/egc/wp/2005/2005-02.pdf
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Bibliographic Info

Paper provided by Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre in its series Economic Growth centre Working Paper Series with number 0502.

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Length: 30 pages
Date of creation: Feb 2005
Date of revision:
Handle: RePEc:nan:wpaper:0502

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Postal: Nanyang Avenue, Singapore 639798.
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  1. Chevalier, Arnaud & Harmon, Colm & Walker, Ian & Zhu, Yu, 2003. "Does Education Raise Productivity or Just Reflect It?," CEPR Discussion Papers 3993, C.E.P.R. Discussion Papers.
  2. Shoshana Neuman & Adrian Ziderman, 1991. "Vocational Schooling, Occupational Matching, and Labor Market Earnings in Israel," Journal of Human Resources, University of Wisconsin Press, vol. 26(2), pages 256-281.
  3. Pereira, Pedro Telhado & Martins, Pedro Silva, 2002. "Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries," Discussion Papers 709, The Research Institute of the Finnish Economy.
  4. Paul Bennell, 1996. "General versus vocational secondary education in developing countries: A review of the rates of return evidence," Journal of Development Studies, Taylor & Francis Journals, vol. 33(2), pages 230-247.
  5. Sourafel Girma & Abbi Kedir, 2003. "Is Education More Benficial to the Less Able? Eocnometric Evidence from Ethiopia," Discussion Papers in Economics 03/1, Department of Economics, University of Leicester.
  6. Chris Sakellariou, 2003. "Rates of Return to Investments in Formal and Technical/Vocational Education in Singapore," Education Economics, Taylor & Francis Journals, vol. 11(1), pages 73-87.
  7. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall.
  8. Schultz, T.P. & Mwabu, G., 1995. "Education Returns Across Quantiles of the Wage Function: Alternative Explanation for Returns to Education by Race in South Africa," Papers 744, Yale - Economic Growth Center.
  9. Martins, Pedro S. & Pereira, Pedro T., 2004. "Does education reduce wage inequality? Quantile regression evidence from 16 countries," Labour Economics, Elsevier, vol. 11(3), pages 355-371, June.
  10. Neuman, Shoshana & Ziderman, Adrian, 1991. "Vocational schooling, occupational matching, and labor market earnings in Israel," Policy Research Working Paper Series 683, The World Bank.
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