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Risk and Heterogeneity in Benefits from Vocational versus General Secondary Education: Estimates for Early and Mature Career Stages in Portugal

Author

Listed:
  • Joop Hartog
  • Pedro Raposo
  • Hugo Reis

Abstract

We estimate a dynamic model of individual labour market careers (turnover and search, wage development) on Portuguese panel data of graduates from vocational and general secondary education. We find that vocational graduates benefit more from the internal labour market than from the external market. This holds even more for mature than for young individuals. This hurts as among the mature, vocational has higher lay-off probability. To the common result that vocational education trades early employment advantage for later disadvantage we add a decomposition of employment status in its dynamic components. To the literature on wage effects we add a breakdown of variances in heterogeneity and risk.

Suggested Citation

  • Joop Hartog & Pedro Raposo & Hugo Reis, 2023. "Risk and Heterogeneity in Benefits from Vocational versus General Secondary Education: Estimates for Early and Mature Career Stages in Portugal," CESifo Working Paper Series 10538, CESifo.
    • Handle: RePEc:ces:ceswps:_10538
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    References listed on IDEAS

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    1. Olympia Bover & Pilar García-Perea & Pedro Portugal, 2000. "Labour market outliers: Lessons from Portugal and Spain," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 15(31), pages 380-428.
    2. Giorgio Brunello & Lorenzo Rocco, 2017. "The Labor Market Effects of Academic and Vocational Education over the Life Cycle: Evidence Based on a British Cohort," Journal of Human Capital, University of Chicago Press, vol. 11(1), pages 106-166.
    3. Ana Rute Cardoso & Pedro Portugal, 2005. "Contractual Wages and the Wage Cushion under Different Bargaining Settings," Journal of Labor Economics, University of Chicago Press, vol. 23(4), pages 875-902, October.
    4. Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages 112-142, February.
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    Keywords

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    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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