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Can Vocational Education Improve Schooling and Labour Outcomes? Evidence from a Large Expansion

Author

Listed:
  • Ferreira, João R.

    (Nova School of Business and Economics)

  • Martins, Pedro S.

    (Universidade Nova de Lisboa)

Abstract

We evaluate the education and labour impact of vocational education and training (VET). Identification draws on different IVs from the large-scale, staggered introduction of VET courses in public schools in Portugal from 2005. We also exploit the large gender differences in VET, with many courses selected almost only by either boys or girls. Drawing on rich student-school matched panel data, we find that VET increased upper-secondary graduation rates dramatically: our LATE estimates typically exceed 50 percentage points. These effects are even stronger for low-achieving students and welfare recipients. Moreover, we find evidence of regional youth employment growth following VET expansions. VET graduates also benefit from higher wages and other positive outcomes over several years, compared to both academic-track and lower-secondary graduates.

Suggested Citation

  • Ferreira, João R. & Martins, Pedro S., 2023. "Can Vocational Education Improve Schooling and Labour Outcomes? Evidence from a Large Expansion," IZA Discussion Papers 16474, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16474
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    Cited by:

    1. Martins, Pedro S., 2022. "The wage effects of employers' associations: A case study of the private schools sector," GLO Discussion Paper Series 1163, Global Labor Organization (GLO).
    2. Dai, Li & Martins, Pedro S., 2024. "The Wage Effects of Polytechnic Degrees: Evidence from the 1999 China Higher Education Expansion," GLO Discussion Paper Series 1399, Global Labor Organization (GLO).
    3. Martins, Pedro S. & Ferreira, João R., 2024. "Effects of Individual Incentive Reforms in the Public Sector: The Case of Teachers," GLO Discussion Paper Series 1441, Global Labor Organization (GLO).
    4. Dai, Li & Martins, Pedro S., 2024. "Does vocational education pay off in China? Evidence from city-level education supply shocks," Economic Modelling, Elsevier, vol. 140(C).

    More about this item

    Keywords

    educational attainment; vocational education; matched student-teacher-school data; VET wage differentials;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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