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High and steady or low and rising? Life-cycle earnings patterns in vocational and general education

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  • Cörvers Frank
  • Heijke Hans
  • Kriechel Ben
  • Pfeifer Harald

    (ROA rm)

Abstract

In this paper, we compare experience-earnings profiles of employees with vocational andgeneral education background in Germany, the Netherlands and the United Kingdom,three countries with fundamentally different education systems. Using Mixed-EffectsLinear Regression Models we show that earnings of vocationally educated employeesare higher in the initial phase of their career. However, those with a general educationbackground catch up over time in the labor market. Life-cycle differences in earnings aremore pronounced in Germany than in the United Kingdom and the Netherlands.

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Bibliographic Info

Paper provided by Maastricht University, Research Centre for Education and the Labour Market (ROA) in its series ROA Research Memorandum with number 007.

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Date of creation: 2011
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Handle: RePEc:unm:umaror:2011007

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Keywords: labour economics ;

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  1. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
  2. Lorraine Dearden & Howard Reed & John Van Reenen, 2005. "The impact of training on productivity and wages: evidence from British panel data," IFS Working Papers W05/16, Institute for Fiscal Studies.
  3. Alan L. Gustman & Thomas L. Steinmeier, 1980. "Labor Markets and Evaluations of Vocational Training Programs in the Public High Schools - Toward a Framework for Analysis," NBER Working Papers 0478, National Bureau of Economic Research, Inc.
  4. Acemoglu, D. & Pischki, J.S., 1996. "Why Do Firms Train? Theory and Evidence," Working papers 96-7, Massachusetts Institute of Technology (MIT), Department of Economics.
  5. Daron Acemoglu & Joern-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," Working papers 98-12, Massachusetts Institute of Technology (MIT), Department of Economics.
  6. Meer, Jonathan, 2007. "Evidence on the returns to secondary vocational education," Economics of Education Review, Elsevier, vol. 26(5), pages 559-573, October.
  7. Claudia Goldin, 2001. "The Human Capital Century and American Leadership: Virtues of the Past," NBER Working Papers 8239, National Bureau of Economic Research, Inc.
  8. Shoshana Neuman & Adrian Ziderman, 1999. "Vocational Education in Israel: Wage Effects of the VocEd-Occupation Match," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 407-420.
  9. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
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