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Resources in vocational education and post-schooling outcomes

  • Mika Maliranta
  • Satu Nurmi
  • Hanna Virtanen

Purpose – The purpose of this paper is to examine the determinants of labour market outcomes after the initial vocational basic education (ISCED 3). Design/methodology/approach – A multinomial logit model is used for examining the effect of school resources and other factors on students' post-schooling outcomes defined as employment, further studies, non-employment and dropping out. Analysis has been done by using unique linked register data on students, their parents, teachers, educational organisations and business companies in Finland. Findings – The results indicate that teaching expenditures do not matter but teachers' characteristics have a role to play. Teachers with a university degree increase the employment probability of the students, whereas the formal competence of the teachers does not have such positive effects. The students' characteristics and performance in comprehensive schools play an important role in determining the outcomes. Local business conditions affect the outcomes of boys but less those of girls. The official quality evaluations adopted in recent years seem to pay attention especially to such aspects of education production that are important for providing capabilities for further studies but less so for employability. Originality/value – Employability seems to be a great challenge to the initial vocational basic education. The findings for local business conditions give support to the view that measures of education policy do not suffice but need to be complemented with those of regional or employment policy, for example, policies aiming to increase regional mobility of the labour force. Such complementary tools are particularly important for boys.

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Article provided by Emerald Group Publishing in its journal International Journal of Manpower.

Volume (Year): 31 (2010)
Issue (Month): 5 (September)
Pages: 520-544

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Handle: RePEc:eme:ijmpps:v:31:y:2010:i:5:p:520-544
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  1. Eric A. Hanushek, 1979. "Conceptual and Empirical Issues in the Estimation of Educational Production Functions," Journal of Human Resources, University of Wisconsin Press, vol. 14(3), pages 351-388.
  2. repec:tpr:qjecon:v:115:y:2000:i:4:p:1239-1285 is not listed on IDEAS
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  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 249-74, July.
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  8. Hakkinen, Iida & Kirjavainen, Tanja & Uusitalo, Roope, 2003. "School resources and student achievement revisited: new evidence from panel data," Economics of Education Review, Elsevier, vol. 22(3), pages 329-335, June.
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  10. Dustmann, Christian & Rajah, Najma & van Soest, Arthur, 2002. "Class Size, Education and Wages," CEPR Discussion Papers 3397, C.E.P.R. Discussion Papers.
  11. Maliranta, Mika & Nurmi, Satu, 2004. "Do Foreign Players Change the Nature of the Game Among Local Entrepreneurs?," Discussion Papers 942, The Research Institute of the Finnish Economy.
  12. Virtanen, Hanna, . "Tulosrahoitusmittariston arviointi - Palkkiomuotoinen tulosrahoitus ammatillisessa peruskoulutuksessa," ETLA B, The Research Institute of the Finnish Economy, number 222, July.
  13. J. Scott Long & Jeremy Freese, 2006. "Regression Models for Categorical Dependent Variables using Stata, 2nd Edition," Stata Press books, StataCorp LP, edition 2, number long2, November.
  14. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
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