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Vocational vs. General Education and Employment over the Life-Cycle: New Evidence from PIAAC

Author

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  • Hampf, Franziska

    (Ifo Institute for Economic Research)

  • Woessmann, Ludger

    (University of Munich)

Abstract

It has been argued that vocational education facilitates the school-to-work transition but reduces later adaptability to changing environments. Using the recent international PIAAC data, we confirm such a trade-off over the life-cycle in a difference-in-differences model that compares employment rates across education type and age. An initial employment advantage of individuals with vocational compared to general education turns into a disadvantage later in life. Results are strongest in apprenticeship countries that provide the highest intensity of industry-based vocational education.

Suggested Citation

  • Hampf, Franziska & Woessmann, Ludger, 2016. "Vocational vs. General Education and Employment over the Life-Cycle: New Evidence from PIAAC," IZA Discussion Papers 10298, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp10298
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    Cited by:

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    2. Silliman, Mikko & Virtanen, Hanna, 2019. "Labor Market Returns to Vocational Secondary Education," ETLA Working Papers 65, The Research Institute of the Finnish Economy.
    3. Maria Esther Oswald-Egg & Ursula Renold, 2019. "No Experience, No Employment: The Effect of Vocational Education and Training Work Experience on Labour Market Outcomes after Higher Education," KOF Working papers 19-469, KOF Swiss Economic Institute, ETH Zurich.
    4. Neyt, Brecht & Verhaest, Dieter & Baert, Stijn, 2019. "The Impact of Internship Experience During Secondary Education on Schooling and Labour Market Outcomes," GLO Discussion Paper Series 425, Global Labor Organization (GLO).
    5. Rita Pető & Balázs Reizer, 2021. "Gender differences in the skill content of jobs," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(3), pages 825-864, July.
    6. Felipe Barrera-Osorio & Adriana D. Kugler & Mikko I. Silliman, 2020. "Hard and Soft Skills in Vocational Training: Experimental Evidence from Colombia," NBER Working Papers 27548, National Bureau of Economic Research, Inc.
    7. Bernd-Joachim Ertelt & Andreas Frey & Melanie Hochmuth & Jean-Jacques Ruppert & Silke Seyffer, 2021. "Apprenticeships as a Unique Shaping Field for the Development of an Individual Future-Oriented “Vocationality”," Sustainability, MDPI, Open Access Journal, vol. 13(4), pages 1-14, February.
    8. Celeste K. Carruthers & Christopher Jepsen, 2020. "Vocational Education: An International Perspective," CESifo Working Paper Series 8718, CESifo.
    9. Marianne Bertrand & Magne Mogstad & Jack Mountjoy, 2019. "Improving educational pathways to social mobility. Evidence from Norway’s “Reform 94”," Discussion Papers 916, Statistics Norway, Research Department.
    10. Lisa Simon, 2018. "Shocking Choice: Trade Shocks, Local Labor Markets and Vocational Occupation Choices," ifo Working Paper Series 281, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    11. Bellés Obrero, Cristina & Duchini, Emma, 2020. "Who Benefits from General Knowledge?," IZA Discussion Papers 12995, Institute of Labor Economics (IZA).
    12. Eric A. Hanushek, 2017. "Education and the Growth-Equity Trade-Off," NBER Chapters, in: Education, Skills, and Technical Change: Implications for Future US GDP Growth, pages 293-312, National Bureau of Economic Research, Inc.
    13. Oswald-Egg, Maria Esther & Renold, Ursula, 2021. "No experience, no employment: The effect of vocational education and training work experience on labour market outcomes after higher education," Economics of Education Review, Elsevier, vol. 80(C).
    14. Eleanor Wiske Dillon, 2020. "Comment on Education and Innovation," NBER Chapters, in: The Role of Innovation and Entrepreneurship in Economic Growth, National Bureau of Economic Research, Inc.
    15. Eric A. Hanushek, 2019. "Addressing Cross-National Generalizability in Educational Impact Evaluation," NBER Working Papers 25460, National Bureau of Economic Research, Inc.
    16. Natalie Obergruber, 2018. "Mikroökonometrische Analyse der individuellen und institutionellen Determinanten von Bildung und Berufswahl," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 80, May.
    17. Hanushek, Eric A., 2021. "Addressing cross-national generalizability in educational impact evaluation," International Journal of Educational Development, Elsevier, vol. 80(C).
    18. Ollikainen, Jani-Petteri, 2021. "Comprehensive school reform and labor market outcomes over the lifecycle: Evidence from Finland," Labour Economics, Elsevier, vol. 68(C).
    19. Ilse Tobback & Dieter Verhaest & Stijn Baert, 2020. "Student Access to Apprenticeships: Evidence from a Vignette Experiment," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(3), pages 435-465, July.
    20. Neugebauer, Martin & Weiss, Felix, 2017. "Does a Bachelor's degree pay off? Labor market outcomes of academic versus vocational education after Bologna," Discussion Papers 2017/11, Free University Berlin, School of Business & Economics.
    21. Rita Petõ & Reizer Balázs, 2021. "Gender Differences in the Skill Content of Jobs," CERS-IE WORKING PAPERS 2102, Institute of Economics, Centre for Economic and Regional Studies.
    22. Ashley Pullman & Britta Gauly & Clemens M. Lechner, 2021. "Short-term earnings mobility in the Canadian and German context: the role of cognitive skills," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-19, December.

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    More about this item

    Keywords

    vocational education; apprenticeship; employment; life-cycle; PIAAC;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • I20 - Health, Education, and Welfare - - Education - - - General

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