The earnings differentials associated with vocational education and training using the Longitudinal Education Outcomes data

For the first time, the matched Longitudinal Education Outcomes has been made available for analysis of qualification attainment and labour market outcomes in England. Using comprehensive information from different school, Further Education and Higher Education data sources, we estimate the association between achieving vocational qualifications at different levels of the Regulated Qualifications Framework and labour market outcomes (earnings, employment and benefits dependency) at the age of 26 for the cohorts of students undertaking Key Stage 4 schooling between 2001/02 and 2003/04. The analysis was undertaken separately for males and females and across different specifications, exploiting the richness of the information available in the matched dataset. The findings suggest that, compared with individuals holding their highest qualification at the level immediately below in the Regulated Qualifications Framework, the association between attaining vocational qualifications and employment or earnings is generally positive and particularly large for Level 4 vocational qualifications, Apprenticeships, and National Vocational Qualifications at Level 3 and 2.