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Further analysis of the earnings differentials associated with BTECs

Author

Listed:
  • Gavan Conlon
  • Sophie Hedges
  • Pietro Patrignani

Abstract

We analyse whether there is an earnings differential associated with having a BTEC qualification as a young person's highest qualification. Previous analyses of wage differentials using survey data on a sample of all working age individuals have shown positive returns for BTEC qualifications for both males and females. More recently, using matched administrative data for a group of young individuals in England, we showed positive earnings differentials for women in possession of BTECs, but failed to observe any positive differentials for males. In this study we investigate further the characteristics of young individuals in possession of BTEC qualifications and estimate earnings differentials compared with a range of different counterfactuals. An analysis of the characteristics of learners in possession of vocational qualifications show that the group of individuals with BTECs typically have higher levels of prior attainment at school and a higher proportion are from BAME backgrounds compared with individuals in possession of other vocational qualifications at the same level. Moreover BTECs act more often as a stepping stone to learning at higher levels (including degree level) compared with other vocational qualifications. When we consider those with BTECs as their highest qualification, we find that earnings differentials are strong and positive for females across all specifications, while they are positive for males only when compared to individuals in possession of BTECs at the level of the RQF immediately below or to individuals enrolling in the same qualification but failing to achieve.

Suggested Citation

  • 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.
    • Handle: RePEc:cep:cverbn:006
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    File URL: https://cver.lse.ac.uk/textonly/cver/pubs/cverbrf006.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. Gavan Conlon & Sophie Hedges & Pietro Patrignani, 2017. "The earnings differentials associated with vocational education and training using the Longitudinal Education Outcomes data," CVER Research Papers 007, Centre for Vocational Education Research.
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    More about this item

    Keywords

    Vocational education; Administrative data; Returns to education;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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