IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp18134.html
   My bibliography  Save this paper

Vocational Education, Earnings and Job Satisfaction in Europe

Author

Listed:
  • McGuinness, Seamus

    (Economic and Social Research Institute, Dublin)

  • Kelly, Lorcan

    (Economic and Social Research Institute, Dublin)

  • Devlin, Anne

    (Economic and Social Research Institute, Dublin)

  • Whelan, Adele

    (ESRI, Dublin)

Abstract

This paper examines the earnings and job satisfaction of Vocational Education and Training (VET) graduates in the European Union (EU) using two definitions of vocational education: a self-reported definition and a more specific definition that incorporates work-based learning. The incidence of third-level VET falls from 74% to 29% under the stricter definition. Across the EU, the returns to vocational and academic qualifications are comparable for upper secondary, post-secondary and tertiary qualifications. Earnings premia vary between countries, with VET generating higher returns in just under one-third of all EU-28 members. Additionally, third level VET graduates enjoy higher levels of job satisfaction.

Suggested Citation

  • McGuinness, Seamus & Kelly, Lorcan & Devlin, Anne & Whelan, Adele, 2025. "Vocational Education, Earnings and Job Satisfaction in Europe," IZA Discussion Papers 18134, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18134
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp18134.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sylvain Weber, 2014. "Human capital depreciation and education level," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(5), pages 613-642, July.
    2. Neyt, Brecht & Verhaest, Dieter & Baert, Stijn, 2020. "The impact of dual apprenticeship programmes on early labour market outcomes: A dynamic approach," Economics of Education Review, Elsevier, vol. 78(C).
    3. Eric A. Hanushek & Guido Schwerdt & Ludger Woessmann & Lei Zhang, 2017. "General Education, Vocational Education, and Labor-Market Outcomes over the Lifecycle," Journal of Human Resources, University of Wisconsin Press, vol. 52(1), pages 48-87.
    4. Bart H. H. Golsteyn & Anders Stenberg, 2017. "Earnings over the Life Course: General versus Vocational Education," Journal of Human Capital, University of Chicago Press, vol. 11(2), pages 167-212.
    5. Brunello, Giorgio & Medio, Alfredo, 2001. "An explanation of international differences in education and workplace training," European Economic Review, Elsevier, vol. 45(2), pages 307-322, February.
    6. Zilic, Ivan, 2018. "General versus vocational education: Lessons from a quasi-experiment in Croatia," Economics of Education Review, Elsevier, vol. 62(C), pages 1-11.
    7. Don E. Bradley & James A. Roberts, 2004. "Self‐Employment and Job Satisfaction: Investigating the Role of Self‐Efficacy, Depression, and Seniority," Journal of Small Business Management, Taylor & Francis Journals, vol. 42(1), pages 37-58, January.
    8. Andrew E. Clark, 1996. "Job Satisfaction in Britain," British Journal of Industrial Relations, London School of Economics, vol. 34(2), pages 189-217, June.
    9. Mavromaras, Kostas & McGuinness, Seamus, 2012. "Overskilling dynamics and education pathways," Economics of Education Review, Elsevier, vol. 31(5), pages 619-628.
    10. Origo, Federica & Pagani, Laura, 2009. "Flexicurity and job satisfaction in Europe: The importance of perceived and actual job stability for well-being at work," Labour Economics, Elsevier, vol. 16(5), pages 547-555, October.
    11. Meer, Jonathan, 2007. "Evidence on the returns to secondary vocational education," Economics of Education Review, Elsevier, vol. 26(5), pages 559-573, October.
    12. Kristensen, Nicolai & Johansson, Edvard, 2008. "New evidence on cross-country differences in job satisfaction using anchoring vignettes," Labour Economics, Elsevier, vol. 15(1), pages 96-117, February.
    13. Mikko Silliman & Hanna Virtanen, 2022. "Labor Market Returns to Vocational Secondary Education," American Economic Journal: Applied Economics, American Economic Association, vol. 14(1), pages 197-224, January.
    14. Benjamin Artz & Ilker Kaya, 2014. "The impact of job security on job satisfaction in economic contractions versus expansions," Applied Economics, Taylor & Francis Journals, vol. 46(24), pages 2873-2890, August.
    15. Clark, Andrew E., 1997. "Job satisfaction and gender: Why are women so happy at work?," Labour Economics, Elsevier, vol. 4(4), pages 341-372, December.
    16. Gary S. Becker, 1964. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, First Edition," NBER Books, National Bureau of Economic Research, Inc, number beck-5, March.
    17. José Millán & Jolanda Hessels & Roy Thurik & Rafael Aguado, 2013. "Determinants of job satisfaction: a European comparison of self-employed and paid employees," Small Business Economics, Springer, vol. 40(3), pages 651-670, April.
    18. Sylvain Weber, 2014. "Human capital depreciation and education level," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(5), pages 613-642, July.
    19. Lutz C. Kaiser, 2007. "Gender-job satisfaction differences across Europe: An indicator for labour market modernization," International Journal of Manpower, Emerald Group Publishing, vol. 28(1), pages 75 - 94, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tobback, Ilse & Verhaest, Dieter & De Witte, Kristof, 2025. "The impact of work-based versus school-based learning on cognitive and non-cognitive outcomes in vocational secondary education," Economics of Education Review, Elsevier, vol. 107(C).
    2. Larsson Taghizadeh, Jonas & Österman, Marcus, 2025. "Choosing the right path: The effects of pursuing general versus vocational secondary education on dropout risk and youth inactivity," Economics of Education Review, Elsevier, vol. 106(C).
    3. Celeste K. Carruthers & Christopher Jepsen, 2020. "Vocational Education: An International Perspective," CESifo Working Paper Series 8718, CESifo.
    4. Laetitia Hauret & Donald R. Williams, 2017. "Cross-National Analysis of Gender Differences in Job Satisfaction," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(2), pages 203-235, April.
    5. Francesco Bartolucci & Aleksandra Baschina & Giovanni S. F. Bruno & Olga Demidova & Marcello Signorelli, 2015. "Determinants of Job Satisfaction in Young Russian Workers," Discussion Papers 7_2015, CRISEI, University of Naples "Parthenope", Italy.
    6. Eric A. Hanushek & Guido Schwerdt & Ludger Woessmann & Lei Zhang, 2017. "General Education, Vocational Education, and Labor-Market Outcomes over the Lifecycle," Journal of Human Resources, University of Wisconsin Press, vol. 52(1), pages 48-87.
    7. Machin, Stephen & McNally, Sandra & Terrier, Camille & Ventura, Guglielmo, 2020. "Closing the Gap between Vocational and General Education? Evidence from University Technical Colleges in England," IZA Discussion Papers 13837, Institute of Labor Economics (IZA).
    8. Franziska Hampf & Ludger Woessmann, 2017. "Vocational vs. General Education and Employment over the Life Cycle: New Evidence from PIAAC," CESifo Economic Studies, CESifo Group, vol. 63(3), pages 255-269.
    9. Neyt, Brecht & Verhaest, Dieter & Baert, Stijn, 2020. "The impact of dual apprenticeship programmes on early labour market outcomes: A dynamic approach," Economics of Education Review, Elsevier, vol. 78(C).
    10. Brecht Neyt & Dieter Verhaest & Stijn Baert, 2019. "The Impact of Internship Experience During Secondary Education on Schooling and Labour Market Outcomes," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 19/980, Ghent University, Faculty of Economics and Business Administration.
    11. Ollikainen, Jani-Petteri, 2021. "Comprehensive school reform and labor market outcomes over the lifecycle: Evidence from Finland," Labour Economics, Elsevier, vol. 68(C).
    12. Romina Gambacorta & Maria Iannario, 2013. "Measuring Job Satisfaction with CUB Models," LABOUR, CEIS, vol. 27(2), pages 198-224, June.
    13. G. S. F. Bruno & F. E. Caroleo & O. Dessy, 2014. "Temporary Contracts and Young Workers’ Job Satisfaction in Italy," AIEL Series in Labour Economics, in: Miguel Ángel Malo & Dario Sciulli (ed.), Disadvantaged Workers, edition 127, chapter 0, pages 95-120, Springer.
    14. Vicente Royuela & Jordi Suriñach, 2013. "Quality of Work and Aggregate Productivity," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(1), pages 37-66, August.
    15. Kemper, Johanna & Renold, Ursula, 2024. "Evaluating the impact of general versus vocational education on labor market outcomes in Egypt by means of a regression discontinuity design," Journal of Development Economics, Elsevier, vol. 166(C).
    16. José Millán & Jolanda Hessels & Roy Thurik & Rafael Aguado, 2013. "Determinants of job satisfaction: a European comparison of self-employed and paid employees," Small Business Economics, Springer, vol. 40(3), pages 651-670, April.
    17. Gennaro Punzo & Rosalia Castellano & Mirko Buonocore, 2018. "Job Satisfaction in the “Big Four” of Europe: Reasoning Between Feeling and Uncertainty Through CUB Models," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(1), pages 205-236, August.
    18. Huzeyfe Torun & Semih Tumen, 2019. "Do vocational high school graduates have better employment outcomes than general high school graduates?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(8), pages 1364-1388, August.
    19. Sönke Hendrik Matthewes & Guglielmo Ventura, 2022. "On Track to Success? Returns to vocational education against different alternatives," CVER Research Papers 038, Centre for Vocational Education Research.
    20. Getinet A. Haile, 2015. "Workplace Job Satisfaction in Britain: Evidence from Linked Employer–Employee Data," LABOUR, CEIS, vol. 29(3), pages 225-242, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • 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
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp18134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.