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Do Vocational High School Graduates Have Better Employment Outcomes than General High School Graduates?

Listed author(s):
  • Torun, Huzeyfe

    ()

    (Central Bank of Turkey)

  • Tumen, Semih

    ()

    (Central Bank of Turkey)

This paper estimates the causal effect of vocational high school (VHS) education on employment likeli-hood relative to general high school (GHS) education in Turkey using census data. To address non-random selection into high school types, we collect construction dates of the VHSs at the town-level and use VHS availability in the town by age 13 as an instrumental variable. The first-stage estimates suggest that the availability of VHS does not affect the overall high school graduation rates, but gener-ates a substitution from GHS to VHS. The OLS estimates yield the result that the individuals with a VHS degree are around 5 percentage points more likely to be employed compared to those with a GHS de-gree. When we use the availability of VHS as an instrumental variable, we still find positive and statisti-cally significant effect of VHS degree on employment likelihood relative to GHS degree. However, once we include town-specific socio-economic variables to control for education, employment, and business activity levels in the town, the IV estimates get much smaller and become statistically insignificant. We conclude that although the VHS construction generates a substitution from GHS to VHS education, this substitution is not transformed into increased employment rates in a statistically significant way. We also argue that location-specific controls improve the reliability of the school construction/proximity instruments.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 10507.

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Length: 37 pages
Date of creation: Jan 2017
Handle: RePEc:iza:izadps:dp10507
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  1. Andrén, Thomas & Gustafsson, Björn, 2002. "Income effects from labor market training programs in Sweden during the 80's and 90's," Working Paper Series 2002:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  2. Kahyarara, Godius & Teal, Francis, 2008. "The Returns to Vocational Training and Academic Education: Evidence from Tanzania," World Development, Elsevier, vol. 36(11), pages 2223-2242, November.
  3. Picchio, Matteo & van Ours, Jan C., 2013. "Retaining through training even for older workers," Economics of Education Review, Elsevier, vol. 32(C), pages 29-48.
  4. Prashant Loyalka & Xiaoting Huang & Linxiu Zhang & Jianguo Wei & Hongmei Yi & Yingquan Song & Yaojiang Shi & James Chu, 2016. "The Impact of Vocational Schooling on Human Capital Development in Developing Countries: Evidence from China," World Bank Economic Review, World Bank Group, vol. 30(1), pages 143-170.
  5. Hirshleifer, Sarojini & McKenzie, David & Almeida, Rita & Ridao-Cano, Cristobal, 2014. "The impact of vocational training for the unemployed : experimental evidence from Turkey," Policy Research Working Paper Series 6807, The World Bank.
  6. Toru Kitagawa, 2015. "A Test for Instrument Validity," Econometrica, Econometric Society, vol. 83(5), pages 2043-2063, 09.
  7. David Card, 1993. "Using Geographic Variation in College Proximity to Estimate the Return to Schooling," Working Papers 696, Princeton University, Department of Economics, Industrial Relations Section..
  8. Joseph G. Altonji, 1995. "The Effects of High School Curriculum on Education and Labor Market Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 30(3), pages 409-438.
  9. Todd Pugatch, 2014. "Safety valve or sinkhole? Vocational schooling in South Africa," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-31, December.
  10. repec:fth:prinin:317 is not listed on IDEAS
  11. Andrew Horowitz & Christoph Schenzler, 1999. "Returns to General, Technical and Vocational Education in Developing Countries:recent evidence from Suriname," Education Economics, Taylor & Francis Journals, vol. 7(1), pages 5-20.
  12. David Card & Pablo Ibarrarán & Ferdinando Regalia & David Rosas-Shady & Yuri Soares, 2011. "The Labor Market Impacts of Youth Training in the Dominican Republic," Journal of Labor Economics, University of Chicago Press, vol. 29(2), pages 267-300.
  13. Orazio Attanasio & Adriana Kugler & Costas Meghir, 2011. "Subsidizing Vocational Training for Disadvantaged Youth in Colombia: Evidence from a Randomized Trial," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 188-220, July.
  14. Francis Teal & Godius Kahyarara, 2008. "The returns to vocational training and academic education: Evidence from Tanzania," Economics Series Working Papers WPS/2008-07, University of Oxford, Department of Economics.
  15. David Card, 1993. "Using Geographic Variation in College Proximity to Estimate the Return to Schooling," Working Papers 696, Princeton University, Department of Economics, Industrial Relations Section..
  16. Kane, Thomas J & Rouse, Cecilia Elena, 1995. "Labor-Market Returns to Two- and Four-Year College," American Economic Review, American Economic Association, vol. 85(3), pages 600-614, June.
  17. Bishop, John H. & Mane, Ferran, 2004. "The impacts of career-technical education on high school labor market success," Economics of Education Review, Elsevier, vol. 23(4), pages 381-402, August.
  18. Werner Eichhorst & Núria Rodríguez-Planas & Ricarda Schmidl & Klaus F. Zimmermann, 2015. "A Road Map to Vocational Education and Training in Industrialized Countries," ILR Review, Cornell University, ILR School, vol. 68(2), pages 314-337, March.
  19. Pema, Elda & Mehay, Stephen, 2012. "Career effects of occupation-related vocational education: Evidence from the military's internal labor market," Economics of Education Review, Elsevier, vol. 31(5), pages 680-693.
  20. Mane, Ferran, 1999. "Trends in the payoff to academic and occupation-specific skills: the short and medium run returns to academic and vocational high school courses for non-college-bound students," Economics of Education Review, Elsevier, vol. 18(4), pages 417-437, October.
  21. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-1160, September.
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