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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
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    Keywords

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    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

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