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Labor-Market Returns to Higher Vocational Schooling

Author

Listed:
  • Böckerman, Petri

    () (Labour Institute for Economic Research)

  • Haapanen, Mika

    () (Jyväskylä University School of Business and Economics)

  • Jepsen, Christopher

    () (University College Dublin)

Abstract

This paper examines the labor-market returns to a new form of postsecondary vocational education, vocational master's degrees. We use individual fixed effects models on the matched sample of students and non-students from Finland to capture any time-invariant differences across individuals. Attendance in vocational master's programs leads to higher earnings of eight percent five years after entry even if selection on unobservables is twice as strong as selection on observables. Earnings gains are similar by gender and age, but they are marginally higher for health than for business or technology and trades.

Suggested Citation

  • Böckerman, Petri & Haapanen, Mika & Jepsen, Christopher, 2018. "Labor-Market Returns to Higher Vocational Schooling," IZA Discussion Papers 11734, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp11734
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    References listed on IDEAS

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    3. Böckerman, Petri & Hämäläinen, Ulla & Uusitalo, Roope, 2009. "Labour market effects of the polytechnic education reform: The Finnish experience," Economics of Education Review, Elsevier, vol. 28(6), pages 672-681, December.
    4. Carolyn Heinrich & Peter Mueser & Kenneth Troske & Kyung-Seong Jeon & Daver Kahvecioglu, 2013. "Do Public Employment and Training Programs Work?," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
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    More about this item

    Keywords

    vocational education; master's degrees; labor-market returns;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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