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Curriculum Updates in Vocational Education and Changes in Graduates' Skills and Wages

Author

Listed:
  • Andreas F. Buehler
  • Patrick Lehnert
  • Uschi Backes-Gellner

Abstract

This paper examines the relation between the nature of updates in training curricula and graduates' skills and wages. Using vocational education and training (VET) curriculum texts as data, we apply natural language processing methods to identify the nature of changes in curriculum updates based on before-after comparisons of the skills the curricula contain. We introduce and measure two dimensions of curriculum updates: the 'novelty rate' (degree of new skills entering an updated curriculum) and the 'removal rate' (degree of old skills dropped from an old curriculum). By matching these dimensions to labour market data for VET graduates, we empirically investigate the relation between different types of curriculum updates and the wages of graduates with updated curricula compared to those of graduates with old curricula. We find non-linear relations and complementarities between the dimensions of updates and graduates' wages: while adding lots of new skills without removing old ones is not favourable, removing old skills is favourable across all curriculum updates. A further analysis on the actual skills that are added or removed illustrates the trade-offs that curriculum designers face. Given the economic importance of optimally preparing young workers for the labour market, our results provide crucial insights for educational policymakers.

Suggested Citation

  • Andreas F. Buehler & Patrick Lehnert & Uschi Backes-Gellner, 2023. "Curriculum Updates in Vocational Education and Changes in Graduates' Skills and Wages," Economics of Education Working Paper Series 0205, University of Zurich, Department of Business Administration (IBW).
    • Handle: RePEc:iso:educat:0205
    as

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    References listed on IDEAS

    as
    1. Fabienne Kiener & Ann-Sophie Gnehm & Uschi Backes-Gellner, 2023. "Noncognitive skills in training curricula and nonlinear wage returns," International Journal of Manpower, Emerald Group Publishing Limited, vol. 44(4), pages 772-788, February.
    2. Fabienne Kiener & Ann-Sophie Gnehm & Simon Clematide & Uschi Backes-Gellner, 2019. "IT skills in vocational training curricula and labour market outcomes," Economics of Education Working Paper Series 0159, University of Zurich, Department of Business Administration (IBW), revised Sep 2022.
    3. Eggenberger, Christian & Rinawi, Miriam & Backes-Gellner, Uschi, 2018. "Occupational specificity: A new measurement based on training curricula and its effect on labor market outcomes," Labour Economics, Elsevier, vol. 51(C), pages 97-107.
    4. Girsberger, Esther Mirjam & Koomen, Miriam & Krapf, Matthias, 2022. "Interpersonal, cognitive, and manual skills: How do they shape employment and wages?," Labour Economics, Elsevier, vol. 78(C).
    5. Jeffrey M. Wooldridge, 2002. "Inverse probability weighted M-estimators for sample selection, attrition, and stratification," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 117-139, August.
    6. Barbara Biasi & Song Ma, 2022. "The Education-Innovation Gap," NBER Working Papers 29853, National Bureau of Economic Research, Inc.
    7. Matias D. Cattaneo, 2010. "multi-valued treatment effects," The New Palgrave Dictionary of Economics,, Palgrave Macmillan.
    8. Christian Rupietta & Uschi Backes-Gellner, 2019. "How firms’ participation in apprenticeship training fosters knowledge diffusion and innovation," Journal of Business Economics, Springer, vol. 89(5), pages 569-597, July.
    9. Tobias Schultheiss & Uschi Backes-Gellner, 2024. "Does updating education curricula accelerate technology adoption in the workplace? Evidence from dual vocational education and training curricula in Switzerland," The Journal of Technology Transfer, Springer, vol. 49(1), pages 191-235, February.
    10. ., 2022. "Years of education," Chapters, in: Cost-Benefit Analysis and Dementia, chapter 3, pages 33-49, Edward Elgar Publishing.
    11. Eggenberger, Christian & Backes-Gellner, Uschi, 2023. "IT skills, occupation specificity and job separations," Economics of Education Review, Elsevier, vol. 92(C).
    12. Barbara Biasi & Song Ma, 2022. "The Education-Innovation Gap," CESifo Working Paper Series 9653, CESifo.
    13. Cattaneo, Matias D., 2010. "Efficient semiparametric estimation of multi-valued treatment effects under ignorability," Journal of Econometrics, Elsevier, vol. 155(2), pages 138-154, April.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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