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Returns to Vocational Education in Portugal

In: Investigaciones de Economía de la Educación 10

Author

Listed:
  • Sofia Oliveira

    () (Nova School of Business and Economics - Universidade Nova de Lisboa)

Abstract

In a context of increasing investment in vocational education, it is highly relevant to investigate the impact of this type of education over labor market outcomes. Following a panel of individuals with upper secondary attainment born between January 1974 and December 1990, this study assesses the wage returns to vocational education and general education, between 1993 and 2009. The sample was drawn from Quadros de Pessoal, a matched employer-employee dataset covering all firms with at least one wage earner. The econometric model used in this empirical study is an adaptation of the Mincer earnings function, which was estimated by ordinary least squares, fixed effects and random effects. After conducting the relevant statistical tests, a random effects method was revealed to be the appropriate one. Results point to a wage advantage for workers with vocational education vis-à-vis workers with general education, in the beginning of the career. In particular, accounting for both workers’ and firms’ characteristics, the former group earns on average about 2% more than the latter, when they enter in the labor market. However, the earnings of vocationally educated workers grow at a slower rate and are surpassed by the earnings of generally educated workers at around eight years of experience. Additionally, when comparing between different vocational tracks, estimates suggest that workers with vocational courses of level III face a higher gain initially as well as a larger disadvantage later in life, than workers from other job-oriented streams.

Suggested Citation

  • Sofia Oliveira, 2015. "Returns to Vocational Education in Portugal," Investigaciones de Economía de la Educación volume 10, in: Marta Rahona López & Jennifer Graves (ed.),Investigaciones de Economía de la Educación 10, edition 1, volume 10, chapter 37, pages 725-750, Asociación de Economía de la Educación.
  • Handle: RePEc:aec:ieed10:10-37
    as

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    References listed on IDEAS

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    1. Josef Fersterer & Jörn‐Steffen Pischke & Rudolf Winter‐Ebmer, 2008. "Returns to Apprenticeship Training in Austria: Evidence from Failed Firms," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(4), pages 733-753, December.
    2. Meer, Jonathan, 2007. "Evidence on the returns to secondary vocational education," Economics of Education Review, Elsevier, vol. 26(5), pages 559-573, October.
    3. Eric A. Hanushek & Guido Schwerdt & Ludger Woessmann & Lei Zhang, 2017. "General Education, Vocational Education, and Labor-Market Outcomes over the Lifecycle," Journal of Human Resources, University of Wisconsin Press, vol. 52(1), pages 48-87.
    4. Wolter, Stefan C. & Ryan, Paul, 2011. "Apprenticeship," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.),Handbook of the Economics of Education, edition 1, volume 3, chapter 11, pages 521-576, Elsevier.
    5. Bishop, John H. & Mane, Ferran, 2004. "The impacts of career-technical education on high school labor market success," Economics of Education Review, Elsevier, vol. 23(4), pages 381-402, August.
    6. Oosterbeek, Hessel & Webbink, Dinand, 2007. "Wage effects of an extra year of basic vocational education," Economics of Education Review, Elsevier, vol. 26(4), pages 408-419, August.
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    14. repec:sip:wpaper:11-003 is not listed on IDEAS
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    More about this item

    Keywords

    Human Capital; Vocational Education; Returns to Education; Wage Differentials;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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